My son received medical services in November of 2014. We filled out paperwork with our correct address and they confirmed our address in their computer at check in as well as insurance coverage which also links to my address. They then sent all the bills to an address where I hadn't lived since 2011. This medical center separates all accounts; parent and individual children. From the period of his date of service, until the bill was sent to collection, I was continually sending them payments for all invoiced expenses on my other accounts that they were billing me for at my correct address. I just became aware of this because I was having my pre-qualification for a USDA loan recalculated... and it dropped my score so I'm no longer eligible! The hospital is dragging their feet on taking any action to reverse the collection and have said, "We may not be able to do anything." I have disputed the collection and I'm certainly willing to pay the collection agency. It is $132. I'm just wary that if I pay it off, I will have no recourse to having it expunged. I did read the recommendation to negotiate that it be deleted upon payment, but does "deleted" mean it no longer affects my credit score?
Do I have any recourse from a legal standpoint? What is my best course of action to restore my credit score?