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Traffic Violation from Italy

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I just received two traffic violation fines from my last trip to Italy in October 2012. The fine is for $600 and $350 dollars which I think is outrageous. The letter came from the American collection agency that the Italian municipality delegated to collect the debt.
I think the amount of fees is insanely inflated but I called the number listed on the letters and they are telling me that they can't reduce the fine and unable to settle. What would happen if I don't pay? Would it ruin my credit? Can I just ignore it? Is there any way to dispute it. I'm very concerned about it. Thank you

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