The reporting of a charge-off is totally unrelated to the reporting of a collection. Your CR can show both.
A charge-off is an internal accounting measure they took. I am unsure of your basis for dispute of the CO, but unless you show either that they did not take that accounting measure or were not entitled to do so, then they were entitled to report that fact to the CRA.
The fact that they took and reported that accounting action is not negated by subsequent status of the debt, including paid.
Taking a CO does not excuse the debt, and they are entitled to continue collection on the full debt, including referral to a debt collector for assistance.
If they refer for collection, the debt collector is entitled to report their collection. If the debt is paid while they still have collection authority, regardless of the hands thru wich payment passed, they are required to update the amount remaining under their collection authority to $0. Deletion of the collection is not required, and in fact would be contrary to the CRA policy that deletion should not be made based on payment of the debt. Any deletion by the debt collector of their reported collection would be entirely voluntary on their part, and could be pursued by way of a good-will request. If having paid thru the OC deprived them of fees, that might not foster much good will on their part.
When paid, the OC is also required to update the current balance of debt now owed to them as $0.
Whether they reference the last status as being charged-off or referred for collection is kind\a immaterial. The charge-off and collection referral, as well as the debt collector's reporting of the actual collection on their part, remain of record in the consumer's credit file unless they specifically report its deletion.
As for impact, it is up to FICO to determine if and how having both reportings impacts their scoring. It could well be that they consider both to be equal in impact, and dont score as a double impact, but I have never seen a clear pronoucement by FICO on how they score the combiined impact when both are reported.
As for manual review, the perception of either is up to the reviewer.
A charge-off tells others that a prior crditor made the determination that you were not going to pay the debt.
A collection tells others that they sought assistace from a third party to attempt to collect the debt.
Personally, I would consider a statement that a consumer is not expected to pay their debt to be more derogatory.
