BMG Direct Direct Brands Music Service, INC Lowered my credit score Internet

I checked my credit report because of credit denial and I find out that BMG Music also Known as Direct Brands Music Serc, INC, place a collection on my credit for $166 for a destiny Child CD that was supposedly order by me and the name had been misspelled, they looked my social security number up and address.  This CD was supposedly order in june of 2005 and they just placed this information on my credit without notifying me in 9/2009. Had I not have a pplied for any credit I would have never known of this alledged collection account.  I called the company and the collector stated that they will remove this account completely from my credit if I made the payment, and because my credit is good, I agreed, but asked for a letter stating this, and she stated that she could not provide that letter to me.  like I stated to her, I have never ordered anything from this company and I am paying for something that is not mine because I dont want it on my credit and she still refused to send out the letter, so I told her I will get an attorney.  This is ridiculous how they can juat place something on your credit that isn't even yours after 5 whole years. This is crazy and they lied about when the account was opened.