Palisades Collection ripoff fraudalent billing in attempt to collect $4601.39 supposedly for AT&T Wireless Bethlehem Pennsylvania

I recieved a notice from Palisades Collection L.L.C stating that I owed them $4601.39 for a debt that supposedly originated with AT&T Wireless, that Palisades bought.

I sent a certified letter inquiring about this debt, and requested debt verificaiton. In return I got a packet of information and affidavits to fill out reporting that my identity was stolen.

I don't know if my identity was stolen, I just know I don't owe this money.

At the bottom of each page it said "Do Not Send Affidavit To The FTC or any other Government Agency".
But, they requested payment be sent.

It did state that my account was placed in a "disputed" status until investigation into my claim was complete.
The letter from Palisades was the first information I Ever received about any debt to AT&T. No bills, no communication with AT&T, just this official looking letter from Palisades.

I did have an AT&T account in 2001, but that was closed and paid in full by me,(properly). The supposed "disputed" account was opened in August of 2003, and "Charged-Off" in January of 2004. The bill total is $4601.39, in 5 months!!!

What do I do? I don't owe them any money! Is this legal? How can they get away with doing this to innocent working people???

Ron
Whigham, Georgia
U.S.A.