Am I being scammed?

Recently I received a phone call from a company calling me about a credit card I once had about 3 years ago. I was unable to pay the credit card off. Now it has been turned over for collection. The individual I spoke with advise me to open a checking account so they could draft the money from my account. The individual told me if I don't do this they will go through my employer and garnish my check until the amount is paid. He said the amount I owe is $5,000 but the company will settle for $2,500 if I give them $500 as a down payment and pay the rest of the money on a monthly basis ($78) until it is paid in full. When I told him I don't have the $500, he said he will waived the down payment of $500 and set up a monthly payment of $78 a month for me until it is paid in full. I am weary of this. Has anyone ever had any experience such as this. I live in Georgia and I do know garnishment is allowed. I don't want anyone to garnish my check. Please help me, is this the real thing or not?