If AA is reporting, but not as a collection, your situation is kind of a catch-22. If there are other collections on the reports, it may be better if it was reporting as a collection since the balance is likely affecting the utilization percentage. However, if there are no other collections, the score would take a big hit if it started reporting as a collection. For example, I have one paid collection on my reports, but it is reporting as a credit account 120+ days late on EQ for some reason while it is reporting as a collection on EX and TU. This appears to be giving me about 50 extra points on EQ since I have no collections showing on that report. However, my case is different since the account has a $0 balance and having it report as credit is not affecting my UTL.
The reason I bring all this up is that one option you may have is to dispute the account for having an incorrect balance. However, in doings so, there may be a risk of the account reporting as a collection when the dispute investigation is complete. At this point, without knowing all the details regarding what else is on the reports (other collections, number of credit accounts, UTL, etc.), it is tough to tell if there would be more of a benefit of it reporting as a collection (in which case, it wouldn't matter that the balance isn't updating) or if it is better having it report as a credit account (in which case it would be hurting your UTL).
Starting Score: EQ 401, TU430