Defend the action and file an answer and you automatically collect your $1,000.00
If the process server can't find you, and the case is dismissed for no service of the complaint upon you, then there is no FDCPA violation under Spokeo (this used to be a violation in the past).
However, if you defend an action in another county, you then have standing to maintain FDCPA claim.
I would consider filing a motion to dismiss for lack of personal jurisdiction and then around the same time initiate an FDCPA lawsuit as the plaintiff. You're not obligated to appear in the action and file a full-blown answer with a counter-claim because you say the court is wrong and has no personal jurisdiction over you.
You sue the debt collector for the FDCPA violation and then if they later file in a correct court I would file an answer with a counter-claim for a new FDCPA violation and allege that what was unfair and deceptive is that they are suing you twice for the same debt and it is unfair that they first sued you in an improper court, costing you time and money to address the issue, and now they want to sue you in the proper court in what is obviously an attempt to wear you down with attrition.
I'd hit them up for the second/separate FDCPA violation and either that settles and they contractually agree to write the debt off, cease collection activity, and not sell/give/transfer/etc the debt to any other party, or you go to a judgment on the matter.
Or in the wrong court, file a full-blown answer with a counter-claim and lawyer up so the lawyer can rack up fees and with the fee shifting provision of the FDCPA it should be easy to stick them with your atty fees because they violated the FDCPA by suing you in the wrong court.
There are any number of ways to attack this problem... You should consider conferring with an attorney in your area and deciding which way might work best for you.