Former Landlord Sent Me To Collections After Failing To Apply Deposit On The Account That Would Cover The Full Balance

Location: Utah (Salt Lake City).
I moved into an apartment on a lease transfer (resident replacement) in 2022. Lease agreement I initially signed and every subsequent lease reflected a $500 deposit, and included a provision that replacement of resident(s) transfers the security deposit to the new resident. The current moveout “balance” is ~$470, plus interest since going to collections but still <$500. I tried to dispute the deposit not being applied as well as a painting charge with the property management company/owner for over a year before it was sent to collections. The initial move out statement was for ~$870 with a $400 painting charge. The collections company was able to get this charge removed since there was not evidence to substantiate the charge, but every time I try to dispute the fact that the deposit covers the remainder of the balance, the response is a copy of the balance statement and the lease, with no additional information. The collections agency representative literally told me “they will keep bullying you until you pay it” and “no one here is going to help you”.

I have tried reaching out to lawyers in my area for months but haven’t received a response. I have the money to pay it but it’s not my debt, so I don’t think I should have to. It’s been hitting my credit for months and I am worried that I will need a new car soon, so it could start to materially impact me. I don’t know what to do next to get this resolved.

Other potentially helpful info:

Property management company says I have to resolve through collections when I tried to contact them. In the initial dispute with the property manager, they said that I had to show them evidence that I paid the deposit personally for it to be applied since it’s not on the account in their records.
I moved out in 2025 through executing the buyout clause, which required me to pay $3000. I confirmed via email with the onsite property manager that there was a $500 deposit that would be applied. There was no clause that said the deposit is forfeit if executing the buyout. I also know that a new tenant was in the unit within 2 weeks of my move out. I would be more inclined to settle the balance, not because I believe I owe it but to avoid the headache, if I hadn’t already paid them $3000 to move out.
There were headaches throughout my time there like my car being towed a few month in from the garage I paid to park on since they neither provided nor told me I needed a little sticker for my windshield, and their payment system claiming compatibility with my bank but actually not resulting in declined payment that removed my ability to pay online at all (I had to hand deliver cashiers checks for about 8 months until their system changed).