Perhaps that could be your argurment, that you never recieved notice till now?.....
It looks horrible to pay it and still have it posted, still reflects really poorly on you. I only have it posted on Experidian (Eqiifax had it but I showed them proof of all my attempts to valiate and someone was nice enough to take it off). This account was reported in 11/05 so the impact to my score is minimal... if I paid it will probably bring it down since it will make it a recent activity (of the negative kind). I'm even afraid that it I pay it they will then report to all 3 and now I'll have a collections record on the other two that I currently don't have (bringing down my score). If you are trying to get another rental or something else you will have to pay it and add a statement to ur credit report explaining it but that statement doesn't do much either.....
I don't know what to tell you, its so unfortunate because they are idiot. I am consdiering writing to the FTC because something needs to be done with these people.