Can NCO collections look at my credit report?

My question is--- I was recently contacted by this company though a verification letter and phone call. When this agency called , I informed them i have sent a response letter for them to verify this account. Then she was very snotty and tried to get me to admit to. the debt, I again informed her of my response letter and legal rights.

She then continued on to say that if I give this amount we can settle this account. She then went on to say that I have a credit score of *** and i could get a loan to pay this debt off.

In other words she was looking at my credit report over the phone. They have not responded back yet to my letter. My question is ---isn't this a violation of Federal law to pass on a SS# from the orginal creditor to this collection agency and the collection agency using it and reporting it on your credit report? It is on my credit report. I have also documented that phone call.I live ca. Thanks P