NCO is on my back as well for something that was never my debt. I spent an hour on Google and read the reports here getting info on them. What I found on Google is required reading - many legitimate companies such as utility companies, use NCO as their means of accepting regular payments from customers online and by phone. I'm not talking about collection or past due accounts, but rather routine payments.
My concern is that once you are in NCO's database for any reason, and once your checking account information is in their database, they have yet another means of accessing you and your info.
When online and doing an online payment at a company's website, think twice - I've read some of the privacy disclosures - most notably MBNA's, and some are absolutely not worth the convenience. I found MBNA's terrible and would not use it. Keep in mind that many companies contract out the payment function to another company because they don't want to go to the expense of doing it themselves, so the get companies that aggressively market themselves like NCO.
Definitely read this article on how the corporate side of NCO gets business from INC magazine - it shows the sleaze factor
http://www.inc.com/magazine/19910601/4660.html
And if you do pay them or any debt collector, *NEVER* do a check by phone or mail - essentially never let them get your checking account information - instead go to a drug store that sells Western Union Money orders or the post office and get a money order for $1 - your check gives them too much valuable information on you. My lawyer told me this in no uncertain terms. Unscrupulous companies OR INDIVIDUALS (including any person who has a check of yours) can use a computer and special paper available at any office supply store to make a "demand draft" which is a perfectly legal copy of your check marker "draft" and drain your account. Once the money is out, unlike a fraudulent credit card charge, it cannot be disputed and there is no hope of getting it back.
One more thing. As of November 1, something called Check 21 has gone into effect - basically checks you write won't have float time anymore. Once they reach the gas company, for example, they can submit an electronic copy of it essentially online instantly, as opposed to having to get your actual check to your bank for payment. This means that if you relied on a couple of days to float your check until you got paid, you can't do that anymore because the check will bounce if the money isn't there when the gas company or Macy's or whomever gets your check.
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