Product: Debt collection

As a result of car accident, I utilized the services of XXXX XXXX XXXX. I hired an attorney ( XXXX XXXX XXXX ( XXXX XXXX XXXX  ) ) to handle my motor vehicle claim. The attorney contacted all medical providers involved. It took over a year for all claims to be closed. XXXX XXXX XXXX contacted XXXX XXXX XXXX ( XXXX ) in XXXX of XXXX. XXXX advised XXXX XXXX XXXX that balance in my account had been charged off and there was a XXXX balance in my account and even emailed them an invoice showing the XXXX balance. 
I began the process to purchase a house in XXXX of XXXX. In XX/XX/XXXX I was notified by XXXX, my credit monitoring services, that XXXX XXXX XXXX ( XXXX ) had reported a past due medical debt of {$1300.00}. I immediately called XXXX and explained that this debt was part of a litigation and they needed to contact XXXX XXXX XXXX and I asked them to remove this bad debt from my credit and they refused. During the call on XX/XX/XXXX I told them that they never notified me that this debt was outstanding. We found out that they had a very old address in their system : XXXX XXXX XXXX XXXX XXXX # XXXX XXXX Ga XXXX, and I explained that that address ( a P.O. Box had been inactive since XX/XX/XXXX ). I also provided them with address since XX/XX/XXXX and my phone number which has been the same since XXXX. I explained that I had been preapproved for a mortgage loan of 2.5 % and now with that collections item on my credit I was being told that my new APR would be 4.1 %. In the middle of this I also purchased a new car and ended up with a 4.49 % APR because of this collections being on my credit, unfortunately I couldnt hold off because the dealership can not hold a car for 30+ days while the collections company waits for payment. I called XXXX XXXX XXXX who stated that they would take care of this. I also disputed the information with each credit bureau to no avail! The item stayed on my credit report because XXXX claimed that the debt was valid. In the midst of all of this, I would call XXXX and tell them that they needed to contact my attorney because my attorney kept telling me that theyre trying to get this resolved, and its not moving. Finally at the end of XXXX, I called both XXXX XXXX XXXX and XXXX and put them both on three way only to find out that XXXX XXXX directed my attorney to call Capio and Capio never returned my attorneys calls or notify XXXX XXXX XXXX that the debt was now with XXXX. 
On Friday, XX/XX/XXXX, XXXX XXXX XXXX agreed to pay XXXX to settle the account. Payment has been made ( as of Friday, XX/XX/XXXX ) yet XXXX are still refusing to remove this item from my credit report until 5-7 days have passed to ensure that the payment is not stopped. They are threatening to leave it in my credit report until payment is fully process and refusing to remove it even though Ive explained that my offer on an house has been accepted and I was ready to proceed with the financing of my mortgage loan! I reiterated to them that they never notified me of this debt, and when I found out about it and notified them that it was part of a litigation it should have been removed and they should have contacted XXXX XXXX XXXX! It is completely unfair what they have done to me and they should be held responsible! They should not be allowed to practice collections in this manner! 
Their lack of training has caused me problems with a 30 year mortgage over {$1300.00} and a 5-year auto loan, which Im also waiting for them to remove the collections from my credit so that I can refinance! I will be seeking compensation for the difference in what I had to pay because of their lack of common sense handling the medical debt!