Is this a set-up?

[fixmycred14]

My current auto loan company agreed to reduce my pay-off to $1K from $1722, if I pay within 30 days. Otherwise, the balance remains $1722 which I can continue to pay on. However, they will continue to report the balance late. I am satisfied with the amount and can def pay it w/in 30 days. Keep in mind that this is a combo of late fees/ interest and not actual principle. The principle is paid in full.
I also requested to have the 30/60/90s removed.

So, I was told by the CEO to dispute the 30/60 online w/ CRAs and they will respond by removing most...
Will the dispute process damage my score? Is there another way for them to remove the 30/60/90s? This is a very small finance company, not sure if this impacts their process.

[guiness56]

When you dispute an OC account certain aspects are removed from scoring.  So yes, it can hurt (or help) your score during the dispute process.  Once it is resolved your score will go back pre-dispute unless things are updated/changed.  If they remove those lates your score should go up.

Yes, any company can remove prior reporting of late payments.

How are they going to report the payoff?  If they report settled that will not help your score,

[fixmycred14]

I'm not sure how they are going to report the pay-off? What should it say? I need to go back and make sure they don't report "Settled".
Is the dispute process the only way past reporting can be updated?

[guiness56]

No, they could just report and leave those lates off or tell the CRAs to remove them.,

But, I have seen creditors tell posters to do the same thing as you and it worked. 

You don't want it to say settled.  That is as bad as a CO.  Paid in full would be best.

[fixmycred14]

Okay, got it! Thanks!

[RobertEG]

I question their ethics in recommending you dispute the lates if they consider them to be accurate.

They are asking YOU to assert inaccuracy, when there appears to be no basis to do so.

If they consider the reporting to be inaccurate, they have a statutory obligation to delete them on their own initiative.  No consumer dispute requred.

If you dispute, they are requred to reply to the CRA with a determination as to accuracy within the CRAs dispute period.

Apparently, they are suggesting that they wont reply to the CRA, thus givng the CRA no basis to verify, thus requring that the CRA delete.

That ignores their statutory oblgation to accurately reply back to the CRA.

[fixmycred14]

Thanks for the feedback. I acutally GWed them and this was the result of the compromise...details below.

I requested the lates be removed as a two part deal. (1) lower the pay-off (2) remove as many lates as possible.

We both agree they are accurate but I requested the favor. The CEO gave me the steps to follow for the dispute. He agreed to respond to the dispute electronically and remove the lates. The company has never reneged on an agreement before....I was more concerned with the dispute process causing my score to lower. As mentioned below, if they report the pay-off as "Paid" and not "Settled" and remove some of the lates my score should increase.

[fixmycred14]

As of today, my auto loan is PIF! I got a score alert and the finance co updated my lates to "Pay as Agreed" $0 balance w/o me having to dispute.

Will I see a score increase?