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There's a collections account on my credit report listed under "The Bureaus" collection agency. I emailed them to ask for a verification. They said they will send one to me in the mail, but stated in the email that the debt is being serviced by a different CA. I guess I have to wait for the verification for details, but are they legitimately allowed be on my report if the debt holder allows them to collect on their behalf?
Yes, both the owner of the debt and anyone they allow to collect on their behalf (aka collection authority) can report.
In this case OP a JDB (junk debt buyer) is the apparent owner of the debt and they have hired a collector to collect for them.