The reporting of the CO itself will stand unless you get GW deletion. However, once you pay any debt, charged-off nor not, the creditor must update your credit file to record (1) a current balance of $0, and (2) a corrent status of paid. The current status must be reported as paid, regardless of whether it was a PIF or a settlement for less.
Paid means satisfied. If settled for less, that is separately reported by a special comment of paid for less. Paid in full is inferred by a current status of paid, and the absence of a special comment reporting that payment was for less than the full amount. There is no Paid in Full current status.
No loop hole needed to get it reported correctly. Any party who has reported information to your credit file has a statutory requirement under FCRA 623(a) to timely report any information necessary to maintain the accuracy of their reported information. You can call and remind them of their obligation. If informal attempts fail, you can dispute the accuracy of their reporting either by way of a dispute through the CRA or by way of direct dispute.
Inaccuracy in their current reporting, however, does not require them to delete the reporting. Response to any dispute over accuracy of reporting can always be to update the reporting. Deletion is only mandated if they cant verify the accuracy of what is needed to correct the informationl
