Need Quickie Response Please...thanks!

They don't have to report anything, but if they do report, under FCRA they must report "accurately". But FCRA is a consumer protection law. No one is going to make them put derogatory information on consumer reports to comply with FCRA. They could legally remove the TL completely, or they could legally fail to verify if you disputed thru the CRA, in which case the CRA would have to remove.

They might have royally screwed up your billing, failing to send bills to your known address, in which case to comply with FCBA they might remove. That would clearly be fair, since they are legally required to send bills to your current address of record at least 14 days before any penalty applies.

As part of other legal settlements, they might also remove derogatory information. If they charged fees not allowed, signed you up for some unauthorized service, failed to credit your payments timely, etc, you might reach some settlement reversing both the unauthorized actions, along with the negative reporting that occurred during the time you were disputing. For example, FCBA requires that billed amounts in dispute not be reported until the dispute is settled. Settlements frequently include non-disclosure provisions, which might encompass credit reporting.

Medical billing involving insurance also often has errors which take time to correct, and medical providers may often remove negative reporting once the bill is properly paid.

In your case, I don't know what leverage you have, other than paying some portion of your debt. You are probably getting a partial payment offer because you look like a bankruptcy risk to them. You would have a better chance at total removal if they had faulted somehow and they faced some legal liability.

 

Although you may have no choice, you might even want the settlement visible while you negotiate settlements with the others.

 

I was looking from a bank's perspective. If my competitor is cutting their losses, maybe I should, too.