This turned out to be a bill (a final payment) that we still owed our previous auto insurance carrier. They'd always gotten paid directly from the bank - we're on an auto-debit plan - and for some reason, they did not get the final month's payment directly from our bank.
So last night, while in an extreme panic mode, I quickly made an online payment to settle the the bill and I quickly called the credit collection agency this morning to make sure that:
(1) my payment has been posted
(2) to ask if my credit report will get affected - as it turns out, they do not make adverse reports to the credit reporting agencies *whew* BUT the insurance company might report my delinquent account *sigh*
Now, I need to call up the insurance company to confirm & make a complaint as to why they sent my acct to a collection agency.