My question involves collection proceedings in the State of: PA
I have a small hospital bill ($165.50), that I was paying a $15 a month payment to the hospital, but I missed a payment and they sent it to a collection agency. The collection agency (State Collectin Service), sent me a letter on May 30, 2008 saying that this account had been referred to their office for collection. I told them I was paying the hospital via the internet every month and that I had just made my payment, and since then I have made 2 payment to the collection agency. Anyhow, I now have the balance down to $78.50. I paid the collection agency $60 on 6-10-2008 and $27 on 6-26-08. I just called them to make another payment, and they told me that if I didn't have it paid off by 7-23-08, that they were going to report it on my credit report. She said she knows that I am paying on it, but they give a total of 60 days to pay them off or they report it. Can they do that? Or is there anything I can do besides pay the balance in full, which I don't have, in order to keep it off of my report? I have really cleaned up my credit report after a bad marriage/divorce, and I finally have a decent score and I don't want it ruined by this collection agency. Any help would be appreciated. Thank you in advance.

