contract opened **********ly on cash payment metho

I did a credit check to apply for a home loan, found out there's a contract opened in my name since July 2015. Contacted altech autopage on their facebook page to correct the matter since I didn't open the contract. Filled in the ***** report, opened a case and emailed the information back to them. Now instead of clearing my name they calling me to notify me that the account has been handed over to their lawyers because I haven't paid. Not once did I recieved an sms, letter or call from altech with regards to this contract since it was opened which surprises me cause it's never been paid. What surprises me more is that the contract was ment to paid cash. I have never heard of the option to pay cash from inception. I'm really angry cause they didn't call me until I filed a complaint and now my credit score is so low I can't even afford a personal loan let alone a home loan.