CA breaking the law?

[Game Plan]

So I have this medical collection that has been on my TransUnion (Only) report for a few years now. It is for a dentist who I have never used and the alleged debt is way pass the SOL so going to court is fine with me.

Okay, so I did a 1-2 punch and the collection agency immediately deleted the collection account from my TransUnion report. By the time my dispute letter got to TransUnion, and they began their investigation, the collection account had been removed. The response that I received from TransUnion was that they had no record of that collection account and therefore there is nothing to delete.

The collection agency never responded to my DV letter. They have, however, started reporting the same collection account to Equifax and Experian just this week. Am I correct in believing that they have violated federal law by reporting this account to the new CRAs prior to answering my DV?