The information he provided is incorrect based upon Dish policy. It's really "supposed" to allow you to sign up for 2 months and at the end of that time period it would simply stop working. A number of people have reported getting the collections notice but in all cases a call has verified that these notices were sent in error. Hard to know if Dish is just not setting up the accounts properly or if they have some accounting issues.
They did give you correct information about holding a credit on your account if you disconnect the service prior to the end of the billing cycle.