Friedmans Jewelry Rip-off late charges from Friedman's Jewelry Shepherdsville Kentucky

I purchased a watch from Friedman's Jewelry in July '06 with 90 days same as cash. I did agree to pay for it in 90 days but sure misunderstood the other terms. I was never send a payment book, but I did pay the full amount within the 90 days. After the 90 days was up I was sent a statement for late payments, even for the months during the 90 day period. I spent a few months trying to dispute the charges but didn't get anywhere with them.
By December the total was up to $108.00, almost what the watch cost in the beginning. Since I couldn't get them to explain all the charges, I ask my Mother to call their corporate credit office for me and pay with a credit card so I wouldn't have my credit ruined.

When Mom called on December 29th she tried to negotiate with the lady and was told she could only take off 1 of the late payments which would make the total $81.00 and make it "paid in full". The $81.00 was then paid by credit card. Now they're calling my parents home and billing me for $54.00 more dollars, which I'm assuming is the 1 late payment the representative at Friedman's collection dept. agreed to take off, plus they didn't even credit the $81.00 till Jan. 2,'07 so they added another $27.00 late payment because the acct. still showed the $27.00 she agreed to take off.

From what I've now heard from others, I wonder how this Company is still in business.

Stephen
Coxs Creek, Kentucky
U.S.A.