payday loan

i received a payday loan in october. I was making small payment due to fact that I was working a job that was only temporary for the time being. So I ended up being unemployed and was not able to make those small payments because I was getting unemployment enough to pay rent,electric,and sometimes car note. So I thought the collection agency satisfied the debt owe because I never received no calls nor letters about the outstanding debt until last month in june 2005 a collector called me stating how much i owe and need to take care of the debt asap, and if i do not my wages will be garnished. So I returned the call back to the collector to find out if I can settle this on a month to month payment plan. Of course there was not comprising at all either the full amt or nothing at all. So I asked the collector why I did not receive any phone calls or letters about the debt. He told me that my acct was with another collection agency and they just received it because they been holding on this acct for 1yr and 6mos. He said well its not our fault or your fault that is matter took so long to be resolved. Now since I have your file we need to accept at least 1/4 of the debt which the collector wanted me to pay within a couple of says after contacting me. I told the collector there is no way I can pay that amt at the end of june due to other important bills that are due. As of today the collector never called back because I told him if you would like to contact me do it by written consent because i employer does not allow calls from third parties representatives.