Prince Sues -- Debt Collector Owes ME $116K

Prince just filed the most awesome lawsuit against a collection agency -- 'cause, for a change, he's going after them to get back more than $100,000 the agency allegedly jacked from his bank account.

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.

Prince is suing to get back his $116,228.12 ... plus interest.