123 Mountain Sent to COLLECTIONS for item not rec'd after cancelled order due to poor customer service Lakewood Colorado

123 Mountain Colorado based internet sales company has sent me to a  collection agency.

I first ordered a product that was out of stock and charged 185.17 on May 11th.  I was told it would be in stock and expected to ship between May 13 to May 27th.  I was okay with this.  Then the end of May had come near so I began asking for updates on the status of my order because I had never received an email confirmation stated the item was actually being sent.  I never received a reply to those inquiries.  On June 15^th upset over the lack of response and feeling like I have dealt with a shady company I called discovercard and told them I wanted to cancel the charge and list lack of customer service as reason, and also to notate that I wanted to cancel the order.  I also emailed 123 Mountain personally stating that I have disputed the credit card charge with Discovercard and that they need to respond to Discovercard.   The item was never shipped or refused at my door.  They issued a credit and discovercard settled the chargeback.  This is where poor customer service turned into shady business practice.

One week ago and again two days ago I received a collection agency notice in the amount of $335.17  I emailed them extremely upset telling them that they cannot send someone to collection for an item that was never received.  They claimed that when i disputed the charge and notified them of the dispute and they credited the charge. The chargeback was not immediately lifted and thus I am a thief and was stealing from them.  Yes they literally said I was stealing from them.  They said they would adjust the amount but that I still owed $100 dollars and sent me a terms and service which states if i refuse the item once its been shipped to me I would owe up to $100.  Except they never sent the item, it was never refused and it never came to my doorstep.  The order was cancelled before any shipping to me occurred. On top of the $100 they stated I also owed the $50 dollar collection agency fee.

In short this company failed to provide customer service which led me to cancel my order.  When I had clearly stated I disputed transaction with Discovercard they sent me to collections and are also trying to charge me a $100 for an item that was never even sent on top of $50 dollars for the collection.  It appears to  me that this company can do whatever they want because if the customer gets upset and decides not to do business with them due to their lack of service, they can charge the customers excessive and shady fees.  I order a lot of things online and have never AND I MEAN NEVER encountered anything as shady and backhanded as this Colorado based internet company 123 Mountain.  I have all my documentation, reported them to better business bureau and I am hoping that you will also investigate so that other people do not have their credit ruined when
they decide that this company offers poor service.

Extra note they will not cancel the collection agency and told me it will go against my credit report until I give them the money!
 
I am more than willing to provide additional info.