More importantly, I would ask the OC if they ever referred an unpaid debt for collection. Now being paid does not necessarily mean that it was never referred for collection.
In their dunning notice, who did they identify as the creditor on whose behalf they are authorized collection? If you can get a statement from that asserted credtior that they never referred collection of the debt to that debt collector, then the debt collector could not obtain any verification from that credtior. So DV them, and force them to assert they have obtained verification.
However, they may just ignore a DV, thus permitting the reported collection to linger in your file. So I would additionally suggest filing a direct dispute under the FCRA, also requiring them, within a 30-day period, to address the accuracy of their reporting or delete as unverified.
Basis for inaccuracy in their reporting would be evidence of no debt, thus no collection on a non-existent debt.
Since documentation supporting your dispute would be key, I would not dispute through a CRA, as they dont forward all supporting documentation to the furnisher.
