They wont reverse their taking of the charge-off, as it is usually mandated per federal regulations.
I assume the intended question is whether they might voluntarily agree to delete its reporting to a CRA if paid.
Since they are not required to report the fact of the charge-off to a CRA even though its taking may have been required, yes, it is possible.
The procedure is to send a good-will request.
However, CRA policy instructs creditors not to delete based on payment of the debt, not because it somehow violates the FCRA, but because the CRAs desire complete credit histories in order to maintain the value of credit reports they sell to others.
A suggested basis for arguing good-will removal might be that reporting of a charge-off is informing others that the consumer is not expected to pay the delinquent debt.
In accounting terms,it has become "uncollectible."
One could argue that removal of a charge-off if the consumer pays the debt demonstrates that the consumer does, when finally able, honor their debt obligations, and thus removal of that inference from their credit file would in fact more accurately reflect the consumer's honoring of their debt obligation.
While the CRAs dont buy that argument because it does not satisfy their own internal business needs of maintaining complete histories, the GW request is not going to the CRA, it is going to the creditor. Perhaps they will side with your argument as opposed to the directions of the CRA.
