Do a keyword search in the General Credit topics or Rebuilding your Credit forums for the "Direct Dispute process". This is what you would do to compel the collection agency to investigate and report their findings. You can also do a "Debt Validation" request letter to them assuming it is within 30 days of their initial contact with you. This will force them to disclose who the original provider was and for what amount. It will also force them to cease collection activity while in the process.
In order to determine what type of collection activity they can pursue you are going to need to look up your states statute of limitations for debts. If it is older than the SOL then they cannot sue you for the debt collection. Once it is past 71/2 years from the date of service they cannot continue to report it on your credit reports. But if the debt is valid they can continue to attempt to collect from you as long as the debt remains unsatisfied by payment in full or settlement.
If you believe the debt is legitimately yours and they are offering to settle and delete reporting you may want to get this offer in writing and follow through with payment. The reported debt even though it is old is going to continue to hurt your credit reports as long as it is on there.
