Thanks for the chance to help. I am an attorney with over 12 years experience. Hopefully I can help you with your legal question.
They may be breaking the law.
The law that applies is called the "Fair Credit Reporting Act" (FCRA)
This law regulates the collection, dissemination, and use of consumer information, including consumer credit information
Under the FCRA, the collection agency must:
1. provide complete and accurate information to the credit reporting agencies.
2. investigate disputed information from consumers falls on them, and they must correct an error, or explain why the credit report
is correct within 30 days of receipt of notice of a dispute.
3, inform consumers about negative information which has been or is about to be placed on a consumer's credit report within 30 days.
So if they are aware of the mistake, but continue to report? You can sue them for violation of the FCRA.
Now...to invoke your rights, there is a process you should follow.
First, contact the credit reporting agencies (the folks who report your credit score) and make the complaint. You must do this in writing. Send them a copy of the judgment
That will start the process where the credit reporting agencies will contact the collection agency with the information you provide. The collection agency has 30 days to respond and fix this error.
If they do not fix the error? Then they are in violation of the FCRA and you can sue them.
The great thing about the FCRA is that it allows you to sue for lawyers fees...so you can sue them (for up to $1000) and get lawyers fees paid
Let me know if you have more questions...happy to assist if I can