BAD deal. Please read. Legal

A friend of mine just called. She has a bad deal going. When she bought her house her debt ratio was to high. In order for her to obtain her loan she had to submit proof that she paid down her credit card. The loan officer came to drop off the pre-approval letter and also took the money order to "make a copy". That was the last she saw of him.

Now, 2 years later she gets a letter from the company that she needs to fix the matter. She was NEVER contacted by them after the fact and was sure that the account was paid. She has no proof because it was in form of a money order and the loan officer was fired. Ironic isn't it? Another wierd thing is 4 months after all this(getting the mortgage and paying the cc) the statments have her making a 75.00 payment. She knows she didnt do that. After paying the card (or thinking she did) she cut it up because she was late the month prior and they raised her interest from 9.9 to 19.9. Anyway what in the hell can she do? The Mortgage company is not being helpful and the CC company sent her statments (all with her new address) for the last 2 years. She has NEVER gotten anything from them since moving. It seems as if they would have called. Her number has never changed. I find the whole thing odd. Another interesting fact- it was charged off in 99 and they stopped charging interest on it in Mar 2000. Now all the suddon on the statements interest is being added again as of 11/01.