Their taking of a charge-off is an internal accounting measure they chose to take, and its reporting is optional on their part.
Yes, they can volunrarily agree to delete. The FCRA does not compel a creditor to report all adverse information on an account.
The requirement is that what they do report cannot knowingly be inaccurate.
Once reported, it stays for 7 years plus 180 days from the DOFD on the account unless they voluntarily choose to delete.
Payment does not negate their having taken that accounting measure, and thus does not result in its deletion.
It is a major derog that is well worth the effort to attempt deletion, and they
Paying a debt, whether or not it has been charged-off, is to avoid potential further damage, such as a collection referral or a judgment, and to improve your credit report in a manual review by showing satisfaction of the debt. It does not remove previously reported adverse items, and thus does not achieve score improvement.
