We paid off and cancelled a credit card in December of 2008. Out of the blue, 3 months later, we got notice that our cancelled card had been "upgraded" and we were being charged a $65 annual fee. We called them and wrote them a letter saying we didn't want the card and hadn't agreed to an upgrade. They gave us a phone number to call for a "cancellation code." We called that number and the person answered the telephone with, "Hello?" My husband went ahead and got a number from them, which I'm sure was made up. We called the customer service number and gave it to them and they assured us everything would be cancelled. Today, we received a bill for $89.38 with late charges added to the original amount and a threat to turn us over for collection and that it would be on our credit report. What can we do?