Should I call the original creditor?

[GettingItIn]

Hey everyone! I have been a member/lurker for about 2 years now and have learned so much. This year I am finally working on my credit to hopefully purchase a home by the end of the year. I have 5 negative items (if you don't count the paid closed student loans that I consolidated), 2 of which I have PFD and I'm waiting for them to POOF! disappear and the one I am questioning below is one of the remaining three. So here goes...

I called William(s) and Fudge LLC in inquiry of an old account from a school I attended. I was laid off and had to quit going and stopped paying my installment plan. Well when I contacted the collection agency they said this account had been returned to the original creditor. My questions are:

1. Should I contact the original creditor and try to reach a settlement for deletion in return? Or...

2. Since the collection agency is reporting it and they technically don't have the account anymore should I dispute it via the credit bureaus? Or...

3. Any other suggestions?

[Anonymous]

You should call the collection agency again.  Ask them to remove your collection from the CRA's since they are no longer collecting for the old account.  Next,  I would contact the OC and see if you can work out something with them.  They may have pulled it from the current CA and will be working with another.  If that is the case, current CA will be removed from your report and another will be added.   You are trying to prevent that by working with the OC.