I have 2 medical collections from 2007 totalling just under 3k and closed last month on an fha. I had insurance at the time and provided my lender proof.
Also, the rule was set to change to any collections that total 1000 or more, but it didn't go into effect. It will really only be a concern depending on how old it is. Dispute them, fax the letter to 3 bureaus. Give a copy to your loan officer, AND file a complaint with the BBB where the CA is located. I had a reaged account deleted in 3 weeks thanks to the BBB. It dropped me 85 points and could've killed my loan.
Thank you LondonMassey and others for your advice. I have disputed them with XP and TU and have faxed them proof of the letters. I am now going to file a BBB report against them, but this feels like it will be a long process! I have 60 days to close since I just received a Wells Fargo grant :/
when the CA said they didn't have any recollection of the letter, did you offer to fax it to THEM? Sending the letter to the bureaus and filing with BBB should get you the results you need but really investigate the CA and find out who else you can contact to fix this. Go on the rebuilding your credit forum and see if anyone has had issues with this particular CA. It worked for me......good luck