It worked! All three now report the collection is gone and my score jumped up 29 points 
This is great because I'm going for a mortgage pre-approval today. Here is what I sent:
Mr. Ken Rapp
CEO and President
I.C. Systems
444 Highway 96 East
St. Paul MN, 55127-2557
Dear Mr. Rapp,
I am writing you in the hope that you will be able to help me. In 2007 I received a collections letter from I.C. System regarding a $287.00 bill that I owed to a Dr.XXXX. I was surprised to see this notice, as Dr. XXXX assured me my treatment was to be fully covered by my insurance. Nevertheless, upon receiving the notice from I.C. System and checking with my insurance company, I paid the balance in full and according to my recent credit report, that account is marked as a “Paid/Closed/Collection account”.
I am planning on purchasing my first home this year. The I.C. System collection record is the only collection account on my credit report, and as you are well aware in this credit market even a single such entry can have a tremendous effect upon rates and limits. I am writing this letter particularly to you because I am trying to take advantage of the homeowners rebate provided I have a signed contract to purchase my home by April 30th, and I hope a direct appeal to you can greatly help me achieve my dream of home ownership.
Please note that I am not disputing the validity of the debt in any way. I am aware that I was fully responsible for the debt to Dr. XXXX, and I paid the amount in full. I wish I was more diligent at the time and regret the whole matter greatly.
I hope that you are willing to work with me in removing this mark from my record as a goodwill gesture and allowing me a more positive credit rating that will help me purchase my new home. I would appreciate if there was anything you can do, and please allow me to extend my sincere thanks at taking the time to read this letter. Please let me know if there is anything else I can do to help in this matter.
Account details: etc etc
