Hi Conan...
Sorry - I wish I had better advice for you... it's just a bit far from my expertise. Since you're broke, I'm guessing a lawyer is out of the question...but maybe one of those free credit counseling places might be able to steer you in the right direction (the good ones, which are free - not the scammy ones that make you pay to supposedly "fix" your credit, which can't be done!)
That - or perhaps one of the financial boards? I like reading the fatwallet forums (though I've never posted there, it looks like there's a lot of great advice) and clarkhoward forums.
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Hmm... do you get clarkhoward (on the radio, and I think he has some show once a week on CNN now) where you live? He's into consumer protection type stuff, you might be able to contact his folks for help...
Here's the page that has his phone numbers on it, but I'm not sure if you can only call during the show, or how that works:
About Us on clarkhoward.com
(Outside Atlanta = Toll-free: (877) 87-CLARK (25275))
I think it can be hard to get through, and I thought there used to be part of the website that told you when his "team" was available to help... I can't find it now, but maybe if you call, or poke around on the site a bit. They could at least give you some advice about the best way to handle it.
If you get to talk to them, DEFINITELY ask about the 7 years thing.
(BTW Clark used to work as a debt collector, at one point in his life, so he always seems pretty knowledgeable about they can/can't do.)
Good luck, I hope you're able to get it resolved!