I checked my credit report for the first time in three years this past summer to prepare for a mortgage, and I found a medical collection. I called the collection agency to pay for delete, but they said they couldn't delete, but they did tell me that they had the wrong address. I called my old doctor and paid directly to their billing. Two days later, I receive my first letter from the collection agency. No big deal, I ignore it, how bad can a $175 paid collection hurt my credit?
My mortgage broker pulls my credit. It was around 750 about three years ago. Now, Experian is 801, Equifax and TransUnion are around 705. WTF??? He tells me that I'm going to be penalized a quarter point for being below 720. He also says that I would get a quarter point discount if it was above 750. Oh, but I can buy a couple of points to lower to what it would be had I had a fico of 750 for $10k! WTF, are you kidding me?
Anyways, what recourse do I have? Is legal actual my only option. Obviously if my legal fees are less than $10k, I mind as well go the legal route. I've contacted my old doctor's office to explain the situation. They called the collection agency, but the collection agency told them that there is nothing that they can do. I've disputed with both Equifax and TransUnion and they just come back as "verified".
