Hang on?? You paid £200 for a service you never received? And they had already apologised to you for it? Why would they hand you over to a debt company if they already apologised and said you didn't owe them any money???

I know it's probably a bit more complicated than that but if that summary is anywhere NEAR the truth I would get on to their CEO Charles Dunstone immediately and demand your money back. What they did amounts to extortion and blackmail and you shouldn't let them get away with it.

If writing to CEO doesn't help, go round in person to their HQ and demand to be seen by someone at the top. Cause a scene! Embaress them! But above all, get your money back!!