Asking for settlement on unvalidated debt.

Did you send the DV within the 30-day period and if so, did you get proof they received it?

If so, then you can sue them for FDCPA violations if you like. Continued collection activity when they know an account has been disputed.

If you're feeling generous though, you can send them another DV request. I would be sure to point out in that second DV request, the fact they are in violation of the FDCPA by continuing to collect on and unvalidated account. Be sure to send them a copy of the original letter along with a copy of the proof it was received if you have it.

I'm in the process of suing a CA for this type of FDCPA violation right now.

Very interesting! Yes I did everything and have the green card.

Their letters states, "If your funds clear, your account will be considered settled in full and will stop all collection efforts." I think its kind of strange that the first letter was for 15% settlement and now the second one is 55% settlement.
In any case, no validation, no settlement.

Will send another DV and see what happens.

Thanks!

P.S. After I sent my first DV, they sent me a letter stating, "If we choose to engage in further collection activity, we will first mail to you at the above address verification of this debt."

That was on March 12, 2008. Never heard anything from them again until February 2009.

Then I would send them a copy of that letter also, mentioning the fact you never received validation as they promised.

That's what I would do.