1st steps to negotiate???

Not exactly. The OC was out of the picture. The collection account was listed as a paid collection. I sent the validation request to the CA, not the OC. No response. Followed that with the estoppel letter. Still no response. Followed that letter with an intent to sue. Again to response. Now in the meantime (between sending each letter) I kept a close tab on each of my reports. Each time I requested validation, the CA did not place a note on the account saying it was in dispute by consumer. <Violation #1 (each time). They also verified with each CRA when I disputed the account during the validation process. <Violation #2 (twice this happened). So, as you can see I built up a paper trail of violations. Violations=money. money is something CA's don't want to lose. Once they finally take you seriously enough, they'll play ball. Otherwise, your last resort is filing a lawsuit against them.

My situation is very similar to many many members of the board. CA's break the law all the time. They just don't expect the consumer to know their rights and to know how to fight back.

Paying off a derogatory account will not help your score as much as you would want it. A paid collection or charge-off account looks better (i.e. when applying for a mortgage, rather than an unpaid coll/charge-off) however, it's still very damaging to your report/score.

If only BofA is reporting the debt, yes you may want to only negotiate with them, however (and I realize you have time constraints here) by ignoring the CA, you're leaving yourself open to them reporting the collection account on your report.

From the FDCPA section 809 (b):

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

Basically, what this is saying (and there is an FTC opinion (CASS) letter on this as well) is once you request validation, the CA cannot continue collection activities, which includes reporting the debt. Which is why validation is so important. You'll want to have that written proof (CRRR) that you requested that the CA validate this debt, and they ignored you, thus breaking a federal law.

Yes. How much it will improve depends. The absolute last negative you have on your report will count for the most. So if this is one of several, your score should rise, but not to prime just yet.

Following the steps for dealing with the CA will take time, yes. However, it has to. You need to document everything, allow the CA time to respond, which in the end equals proof for you if it ever had to go as far as going in front of a judge.

If you can pay the account off, and feel confident in negotiating with the OC, then go for it.

Just remember, you need their settlement offer/agreement in writing. You want all negs related to the account deleted, or you want the entire account deleted, otherwise no deal.

And remember, by going to the OC and saying "hey I want to pay this account off..." you're damaging your (potential) validation request. You can't do both, because if you did, and the CA had half a brain, and the OC had the other half, the OC would send the CA the settlement offer you made, and then validation becomes futile. But that of course would only happen if they actually got together on the account, which doesn't happen often.