Cell C - Bad Service Provider

I got a new contract with Cell C for a laptop.

The laptop was faulty and they collected the device.

They confirmed that their was an issue and agreed to cancel my contract.

I just received a sms stating that my account was handed over to the lawyers as I have not made payments on the account.

How is this possible when they even confirmed that the monies that were deducted from account will be refunded in full back to me.

Placed on ITC for being a bad payer!

They have the device and the internet ****le in its original packaging and a confirmed telephonic recording that everything was resolved .