When an original creditor gives up on collecting a debt, they typically sell it. The buyer becomes the collection agency reporting on your file.
Your rights - Debt validation letter within 30 days - Written communication only, if you request it - Cease-and-desist rights under FDCPA - Statute of limitations by state
Options - Validate and dispute if inaccurate - Negotiate settlement in writing before paying - Pay in full and request removal in writing - Wait out the reporting period while rebuilding
Never pay a collection over the phone without a written agreement first.