Complaint Review: CBCS

Okay, so back in 2000 my wife is contacted by CBCS about a verizon long distance account created using a similar name, but using my wife's SSN. Obviously this was not her account. She never had a verizon account. After hours on the phone with AG's, state consumer services, fraud departments, police department from offending city (accross the country from where we live), and a state judge, we were told to send what was basically a cease communications letter. Back then, I wasn't aware of this great site and I'm not sure if much has changed since then.

Anyway, we did write a letter and sent it via certified mail and never heard from them again. Suddenly, 7 years later we get a letter from CBCS indicating we owe 1300 dollars and we could "settle" for 800. Fortunately we kept our documentation and the receipt that CBCS signed when they received our letter.

My question is - now what? I refuse to go through the trouble of proving our innocence once again. From what I've read, we now have the right to sue. I'm not sure it's worth doing for a measly $1k. We've spent more than that with our time and that's not to mention the angst we have dealt with in trying to work with the CBCS morons.

I'd like to get some reccommendations.
Thanks.

Jasons
Home, Utah
U.S.A.