CA not bonded in Texas but reports "paid collection" even though i never paid

[thrones13]

So I'm in a dilemma. Here are the facts:

 

1. The CA is ACS Education Services

2. The company is not bonded in TX according to the debt collector search site - I tried all variations and other names the company goes by

3. After I disputed the account with Experian (after calling ACS directly, they said they no longer handle the debt. They gave me no further info) a few months ago, the status was changed from collection to "paid, was in collection ..."

4. However, I never paid anything on this account

5. I wanted the account removed completely from my credit report and so I sent a letter to Experian requesting that it be removed because the company was in violation of the TX Fin. Code.

6. The investigation was completed by Experian and they told me that the creditor verified the account - thus it is still being reported as "paid collection." When I asked Experian whether the CA even verified that it was bonded, they said that they report what the CA tells them to, and that the specific question regarding TX law should be directed to the CA directly. Needless to say, I was frustrated b/c the CRA did nothing verify the veracity of what the CA reported.

 

My question is, what should I do if I want this account completely removed? On one hand, an account which I didn't pay anything on is now being reported as "paid collection." On the other hand, if I move forward with an ITS to the CA and invoke the TX Fin. Code, I'm afraid they may retract the "paid collection" and then come after me for the debt. Should I go forward with the ITS anyway? Has anyone had experience in dealing with ACS? Any help would be much appreciated.