The FCRA contains no provisions requiring deletion of a reported collection based on payment of the debt, or that reporting of having collection authority prior to payment of the debt becomes basis for inaccuracy of that reporting after the debt is paid, regardless of whether paid to the OC or through the debt collector.
The deleetion or non-deletion of a reported collection is governed by written policy of the CRAs, not statutory requirements.
CRA policy is different depending upon whether the debt collector had collection authority at time of payment of the debt.
If an assinged debt collector retained collection authrotiy at time of payment, CRA policy is that the collection should NOT be deleted.
However, CRA policy is that if an assigned collection authority is terminated by the owner of the debt priro to its payment, then the debt collector is required to delete their collection.
Unless the OC terminated the collection assignment prior to receiving payent of the debt, CRA policy is thus that the debt collector should not delete.
As for sending a DV after payment of the debt, it would serve no substantive purpose.
Even if timely (i.e., sent within 30 days of receipt of dunning notice), its effect would be to impose a cessation of further collection activities on the debt until the debt colletor had first provided the requested debt validation. There is no time period in which they must respond.
With no debt now due, no further collection activites would be permitted regardless of receipt of a DV, thus making it redundant.
It will most likely simply be ignored.
Even if the debt collector chose to respond, they could simply verify that the amount of the debt is now $0.
The proper procedure is to request GW deletion by the debt collector. Disputes and DVs are unlikely to promote ultimate good will.
