Thanks for the additional information. It's not likely this will impact your closing since your loan is approved. But, you do want to move to get this removed. It's likely a total scam rather than a mistake...many times fraudulent collection agencies do this to get people to pay to get the report removed. The first thing you want to do is get the information on the collection agency that reported this on your credit report. Once you get that, call them and let them know this is a false report and that if they do not remove it immediately, you will: i) file a defamation suit against them for your actual damages
plus punitive damages due to the fraudulent report; and ii) file a formal complaint with the Federal Trade Commission. Their actions have violated the Fair Debt Collection Practices Act and that you will report each and every violation to the Federal Trade Commission. Each violation carries at least a $1,000 fine, so that should be the end of things for you. In the meantime, if this causes a problem with your lender, you could make a deal with your lender to escrow
the amount of this claim so that if it's ultimately proven true, they can use the escrowed amount to pay the supposed debt. You can also take immediate proactive action by filing a suit against the collection agency to have the report removed. You can go through a more deliberate process by filing a report with the credit agencies themselves, but the problem is that they have 30 days to respond and that may not be timely enough for you.
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