Prince Going After Collection Agency

According to the suit ... Capital Asset Protection made two withdrawls from Prince's bank accounts back in June in the amount of $105,949.14 and $10,278.94.

CAP was collecting the money for a lawsuit Prince previously lost over a music production contract.

But in the new documents, filed Thursday in L.A. County Superior Court, Prince says a judge vacated that original judgement in October, 2011 ... thereby erasing his debt to the production company.

So, according to the suit, CAP collected on a debt that didn't exist. Oops.