My question involves judgment recovery in the State of: Colorado

I originally had a credit card account with HSBC (Best Buy) with a $500 limit (charged off in 7/2007, if I remember correctly). I defaulted on the card, it was apparently sold to a collection company in Denver, and they filed papers in my county court. I was served and I did show up to the court date which was early last year. The single court date involved was a 10 minute meeting with a 'representative' from the collection company. She claimed I owed appx $1300.00. Needless to say, I declined, recited some lines from the Fair Credit Reporting Act, etc, etc and told her that I would pay the original debt of $500 regarding this alleged matter. She saw that I was not going to be a pushover (and was probably surprised that I showed up in the first place) and said she would talk to her boss about my offer and good-bye. No judge, no courtroom, no judgement, no anything related to the entire legal system. I received an email with a counter offer for just above $735 later the same day and I again asserted my claim and situation but I also countered with offering $600 for satisfying this alleged debt. I never heard back from her after that.

Now, I receive a letter from the same collection company but a different person. They claim that a judgment was entered in the above referenced case on 2/3/2012 and the balance of $1635.03 with interest at 8% per year will accrue. Like I said, the above was the only court date that I was served for and did appear, meet , and try to negotiate a settlement. Nothing happened after my last offer and I have had no contact for over a year. I have had no other summons regarding the matter served to me and had absolutely no other court dates assigned or pending. The best part is that as of January 5th, 2012 I had moved to New Jersey and this is where the letters are being forwarded to.

Finally, my simple question is, how can they claim to do all of that without literally following the law? If there were other summons or court dates, I would have surely appeared but there was nothing. I cannot imagine that a process server would just toss it in the bushes and call one delivered. I also do not know if there is any other reasonable circumstance that would permit a judge to enter a default judgment without me knowing about it much less not be there to let it happen in the first place.

The only other option is that the letter is a veiled threat and/or a false claim and I can sue them for it

Thank you