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collection on credit report


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we have client with collection that that is unlawful to begin with since the client never agreed or ordered the service and its over the statue (after 3 years on oral) however we asked collection company to simply get off and remove their reporting it seems that they acknowledged that this is uncollectable but they refused to remove only if client pays something and agrees to settle..... My Q: Is they allowed to report when it’s uncollectable? I understand once statue has past it could still stay for up to 7 years but when it’s in error and shouldn’t be there in first place could we force them to remove it

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