Not a legal eagle, and can't quote the statues, but I can see what's wrong from being messy..haha.
You paid them, they didn't update the report to paid collection. You don't want that, cause paid collection is just as bad as an unpaid one.
I dunno about the part about it didn't show up until you paid...that can be answered by tha experts here too....
You disputed, they verified, and it still didn't update to the correct status.
I know you can use this to get it deleted, but I don't know the statues..but it's something about accurate reporting, etc..
Even if this didn't help much, it should get ya started in the right direction!
Don't get your question answered and run off. Come back to this great board and help others!