BofA CC CO vs paid, settled for scoring purposes

[specialksauce]

Just curious if anyone knows how Fico scores unpaid CO's versus paid, settled less than balance on credit reports. 

There is a BofA CC CO from 2007 that shows in CO and transferred to another company. He paid a lawyer that was collecting on it right after it was charged off. This CA is not showing on his reports but they never updated BofA as settled for less than balance. 

If we find this payment and call BofA and show the proof he settled less than the balance, will BofA updating to paid, settled be worse than whats on his reports right now? Is it better to leave it alone and let it age off? 

BofA: 

Closed 12/29/2007

Date updated: 1/10/2008
Last Payment made: 05/09/2007
Date of removal: 06/2014

He paid the lawyer sometime in spring/summer 2008

Any thoughts?

[DaBears]

unpaid or paid charge-off is scored the same by Fico. If the bal is higher than the CL than you could get a boost cause it's not factored into your UTIL anymore. 

[specialksauce]

Balance was 1966 and settled for 1k. Limit was at 1500. Hes got 2 other CO's at a high amount and they are over credit limit so I doubt that He would see any difference from that being helpful with utilization etc. HIs other CO's amount to 33k and its over limit on both. They are killing his credit....

[DaBears]

You can send GW letters asking if they can be removed. How much longer do they stay on his reports? They will affect his scores until PFD, PIF or just fall off.

[specialksauce]

BofA is 06/14 and USAA is 12/14 and 01/15.

For the usaa co's they report balances every month but he still needs to amend his 2012 taxes to reflect the 1099-c's he got for them. He can claim insolvency for both. So when he gets that tax portion of the co taken care of, usaa has to show $0 balance for the co correct? And if so his utilization will be better bc those won't be factored anymore?

[DaBears]

Yes cause they sent him 1099-C's Their is no debt to collect on anymore and they must show a $0 bal. If the collection is affecting his UTIL then yes he could see a bump in score.