Small 'collection' account - what to do?

[tess_bk]

After paying it off, I mean -- which I'll be able to do in a couple of weeks. It's only $112 and it went to collections due to an oversight on my part (I got busy with school and forgot to make a payment on a medical bill this past summer). It says it's "scheduled to continue on record until Aug 2012" -- but will it stay on record once it's paid? Will it impact my credit score very badly, even if it's paid off? I'd really like my credit report to be as clean as possible post-BK ... wouldn't even have gotten $112 into debt except that I had to have a medical test done and the insurance company didn't pay for it.

tess

[Minnymouth]

Once you pay the debt off - it no longer exist...... they have to report Paid in full................

That small amount will have very little impact on your credit score..

[badgambler]

Write them a letter saying you will pay off the amount for removal of the tradeline. You need this in writing from them.. Some will say they only can report correct information.. Which is 100% true... but there is no law saying they have to report anything..Which should be stated in your letter. Request a letter stating the full removal of the tradeline once paid in full.. They will try and be slick and say "update" but all that will show is a zero balance.. Which is all fine and dandy but having the collection on your report to begin with is the problem here..

Second approach if they will not agree to this... Pay off the amount then dispute it with all three CRA's as "not mine" alot of times a collection agency will not even respond to it after it has been paid..

If you need a example of a letter that worked for my wife please let feel free to PM me..