Product: Debt collection

This morning I noticed that a collection account was showing on my XXXX credit report. 
I was petrified because i dont have any debt that i know of and no one has ever contacted me regarding any debt. 
After looking into it further it turns out that this purported debt is regarding internet equipment that I returned to XXXX  back in XX/XX/XXXX. I returned the equipment via their iwn provided box and return labe. Shortly after returning it they sent me a bill of {$230.00}. I called them and they claimed that i had not returned the Modem, I provided the XXXX tracking number ( attached ). After verifying that they received the equipment they later claimed that they received the equipment broken/damaged. 
It definitely sounded like they were scamming me with the changing reasons from not received to Broken/damaged. I told them that the equipment was operational when I returned it. I also made a claim with XXXX just in case it was broken during shipping. 
XXXX wanted some proof of the broken equipment before they could process the claim. I contacted XXXXXXXX XXXX who told me there were no Pictures or evidence that they could share with me or with XXXX. 
I told XXXX that without any proof of damage XXXX wouldnt pay the claim. 
I made that clear and waited for proof of the damaged equipment however it wasnt forthcoming. I never received any proof or evidence that indeed the equipment was damaged. 
Fast forward 1 year later XX/XX/XXXX It appears to me they reported my account to a collection Agency called Joseph Mann and Creed. However this collection Agency has never spoken to me about any debt. I called them after getting their contact information from XXXX credit report. They claimed that they called me several times and sent a letter to my address. This isnt true. USPS sends me emails with photos of my mail everyday before the mail is delivered. I looked at those emails for the period that Joseph Mann and Creed are claiming to have sent it, however there is no letter from them. Had I received a letter or a message, I would have definitely responded especially given the fact that the XXXX bill is disputed and its XXXX who have the burden of proof to show that the returned equipment was indeed damaged. To this day XXXX has not provided me or XXXX with any proof that the returned equipment was defective. 
Joseph Mann and Creed didnt leave any phone message or email me despite the fact that they have my email address. When I asked them about that they stated that they couldnt violate my rights which i find amusing given the fact that they destroyed my credit which to me is worse that sending me unsolicited emails. They could have left a voicemail if indeed they called me during working hours when I was at work. 
They reported my account to credit bureaus dropping my FICO score by XXXX points even though they have never spoken to me. I pointed it to them that its illegal to report to credit bureaus without making a real honest attempt to contact me regarding any Debt. If they really wanted to contact and get hold of me, they would have done so. Instead they reported a disputed account that has resulted in me having a derogatory credit.