4 year old debt, now showing in collections.

Background: With hindsight it was stupid. But 4 years ago, I was in need of $100, but couldn't get a loan or borrow from anyone, so I turned to some shady tribal lender based out of Nevada ( I live on Arizona). At the time I figured it would be fine, get $100 now, pay $150 next week and be done with it.

So, I got the $100. When I logged on to their website. The link that was supposed to open up the payment screen was dead. I tried calling on four different occasions. I was hung up on twice and waited on hold for over two hours on the other tries. I sent messages through their website and email asking for them to contact me so that I could pay. No one responded. Debt never showed on my credit reports.

I forgot about it until a year later, checked but it was still the same thing. Out of sight out of mind until today.

Today: I get a credit alert from Experian that I have a collection on my file. So I look on creditkarma and there is a lovely little collection from this hole-in-the-wall lender for $120.

Now, first, I'm grateful they hadn't applied the compounding interest and filed for $11 trillion (actual amount, lol).

But now I turn to you fine redditors for some guidance. I realize it's my debt and have a responsibility to pay back my debts. But I hesitate at paying through a collection agency, because I feel that I made every reasonable attempt to contact the lender for payment. I'm willing to pay, but I am in the process of rebuilding credit after a short-sale and would rather not have another derogatory mark on my profile.

EDIT-- I should mention as of yet, I have not received a written notice of collections or the debt, nor any phone calls from the lender or collections. This has all been discovered through credit monitoring. I have also moved 3 times since then, but all in the same state.

2nd EDIT-- I reviewed the bot suggested articles. I'm unsure of how to proceed if I haven't been contacted by anyone.