One of the primary provisions of the FDCPA is intended to prevent the very situation you now face..... a submarine collection being reported to your credit file, and thus appearing in your credit report, without your knowledge. FDCPA 809(a) requires a debt collector, after beginning collection activity by contacting you or reporting to your CR, to send a dunning notice within 5 days therafter, informing you of their collection activity, the name of the creditor, and the amount of the asserted debt.
They have apparently violated that requirement. Violation of timely dunning notice requirement is not, per se, basis for requiring deletion of their reporting, but you can file a complaint with the FTC, your BBB, etc., or bring legal action. Meanwhile, lack of dunning notice may give you some leverage if and when you call them.
You might, in your discussion with them, agree to overlook their violation of FDCPA 809(a) if the agree to a PFD. They have unclean hands in their collection activities.
