I paid a dental bill to the OC a week after we recieved notice that it went to collections. I walked into the dental office and paid the bill, they accepted payment and said they would pull it back out of collections.

We recieved a bill for $128.00, that is just the amount of intrest and fees the CA wants for having the collection, and then we didn't hear anything for at least 3 months.
Now this CA has put it on my CR and I am sure they are going to try and hit DH's as well. They have it showing as we owe them the orginal bill amount of $908.00 and that it's unpaid.
I have a thing from the Dentist showing it as paid and that we now have a zero balance with them.

So what do I send the CA? a DV? or ?

You opt out and send the medical dispute letter to the CRA (s) where it is reporting.
http://whychat.5u.com/hipltr.html#DISPUTE

You SHOULD get a deletion.

If that doesn't work, or if the account is changed to "paid",look at your cancelled check and see if it was deposited to the OC, or signed over to the CA.

If it was deposited to the OC account, send the OC the HIPAA letter insert "b" and include a copy of the check, front and back.

Do NOT contact the CA.

looks like we have a similar problem. hope we both
get this resolved quickly and easily