1 Dispute the entry with the credit reporting agency. If the entry comes back as verified, it is a violation of the FCRA, as you can prove that they account is not being correctly reported.

2 Send the CA a letter by certified mail, and tell them that you dispute the incorrectly reported entry.

3 Dispute the entry with the CRA again, if possible (Experian will not let you dispute the same item twice) If it comes back verified again, you have some great proof

4 Sue the collector for violations of the FDCPA, and the FCRA. You can get actual damages in the amount of the loan, statutory damages of $2,000 (1K each for the two laws broken) and the FCRA allows punitive damages. They nearly always settle, and you will get cash and a deletion as your settlement.