Terminology is vague, and thus I am not sure what they are saying. I share your confusion.
The use of the term "account" concerns me.
The only consumer "account" you have was between you and the original creditor. You dont have an "account" with a CRA,
What you have is a separate collection reported by the CA that is or was showing in your CR. That "account," if one wishes to call it that, is only between the CA and the CRA for reporting purposes.
A CA can never close or delete your OC account. They can only update status of their CA reporting to the CRA.
A CA can report status of their reporting under one one of the following codes:
Collection remains unpaid
Collection has been paid in part, balance remains
Collection paid in full
Collection paid under settlement for less than the full amount, or
Collection deleted.
What they are apparently trying to say is that the collection is being updated to a delete status, which will remove the collection from your CR, but not any "account."
I would send the CA the following letter (keep it just this simple):
"Your letter dated (date) is acknowledged as your consent to immediately update the status of your prior reporting to the credit bureaus as a deletion of the prior collection reporting you have made. This requires that you report this deletion status to the credit bureaus. I request that you make prompt notification of the deletion status to credit bureaus."
