Contesting the debt will most likely require legal action to get the facts before a third party (judge) authorized to make a finding of fact.
Since you did not state that the OC reported, you could not use the FCRA dispute processes with them. A dispute to the debt collector will require them to investigate and make a finding of accuracy, which could be based simply on receiving assurance from the OC that the debt is valid. They would not have to support a finding of accuracy by documentation, so it most likely will not resolve the factual dispute. You can certainly iniitiate a dispute, but it wont lead to a factual determination of legitimacy of the debt.
You could choose to send the debt collector a DV request, and thus forstall any further collection activities on their part until they provide the requested debt verification.
But, again, they can simply obtain asssurance from the creditor, and verify without producing factual documentation. And the cease collection bar it will impose will preclude you from negotiation on payment of the debt until such time as they have provided debt verification.
You can simply pay, and get immediate satisfaction of the debt, but payment alone wont compel any CR deletion. Unless you are in a hurry to satisfy the debt, such as need to do so based on a current mortgage application process, you would be best served to first offer payment in exchange for CR deletion. If they accept, the debt is satisfied, and the collection is deleted. If they dont accept, it will continue to impact your score, and you then each have your own options. If the SOL has not expired on the debt, they may choose to initiate legal action. How old is this debt?
If you choose simply not to pay, again, first consider whether the debt is still within SOL, and thus whether non-payment could result in a judgment. However, if they initiate legal action, that would give you your day in court to prove the debt was not legitimate.
Based on the DOFD, you may or may not have an extended period before the 7yr plus 180 day CR exclusion period has expired.
No clear answer.... it depends on your view of each of the factors discussed...
What is the SOL in your state, and how old is the debt (what is the DOFD on the OC account)?
How immediate is your need for CR deletion?
Do you wish to dispute or bring legal action, thus challenging the debt itself before considering any payment?
Personally, I would consider the PFD attempt to have the most potential gain.......
