Contractor asking for money without completing the task?

Had this PR agency running a PR campaign for me. These guys never completed the task but they say they did and ask me to pay them in full so I simply said "no".
Basically, in their original proposal they had said that they would contact the ethnic groups and I don鈥檛 think they did. When I asked them to provide me with a list of media outlets they contacted, they provided me with a list which didn鈥檛 have any ethnic media outlets. As a result, I called them up and said why didn't you guys contact the ethnic media outlets. Then then sent me another list containing the ethnic media outlets and they are claiming that they did in fact contact these ethnic media outlets.
I then asked them to provide me with the contact of a couple of these ethnic media outlets because I wanted to verify their claim. They have simply refused to do so and said they are going to handle the case through a collection agency.
Is that legal? Any suggestions on what I should do now?

Stop wasting time here seeking answers which are likely to be useless and see a lawyer. By the sound of it you're going to have to do so sooner or later anyway.

You should launch the first shot and hire a lawyer. Have him send them a letter requesting proof of services. Don't sit back and wait for them to force you into collections.

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