Which CC company?
When was the settlement payment made?
Strangely, your exact question is one that folks don't like to give an educated opinion on.
Again, how long ago did you make that payment?
Do you have written confirmation that the debt is satisfied?
I have the same general question as you, and simply don't know the answer. I would assume that dispiuting it as "balance is incorrect, it should be 0" would resolve it, but like you I am not confident of that. Getting the answer as to whether a creditor can report a settled debt as something other than "0" or "-" is proving difficult.
When I get a few minutes, I am going to look for the relevant FCRA language....
FYI, @RobertEG has previously written:
"The FCRA does not specficially state that a paid debt must be reported with a $0 balance, it states that they are required to promptly update ANY item previously reported in a manner necessary to reflect its current accuracy. Section 623(a)(2) covers all reporting, without attempting to itemize all specific situations.
The assertion that paid debt = $0 balance is a fact in and of itself.
Unless they assert that the debt is not satisfied, they have an obligation under section 623(a)(2) to promptly update the current balance."
Settling a debt means that you have negotiated with the lender, and they have agreed to accept less than the full amount owed as final payment on the account. The account will be reported to the credit bureaus as "settled" or "account paid in full for less than the full balance" The account that appears as "paid in full" on your credit report shows potential lenders that you have paid the creditor the full amount that was due. But not the entire balance. It isnt going to show a 0 balance due to it wasn't paid in full. But the fall off clock starts at DoFD. Any time you don't repay the full amount owed, it will have a negative effect on credit scores.
@FireMedic1 wrote:Settling a debt means that you have negotiated with the lender, and they have agreed to accept less than the full amount owed as final payment on the account. The account will be reported to the credit bureaus as "settled" or "account paid in full for less than the full balance" The account that appears as "paid in full" on your credit report shows potential lenders that you have paid the creditor the full amount that was due. But not the entire balance. It isnt going to show a 0 balance due to it wasn't paid in full. But the fall off clock starts at DoFD. Any time you don't repay the full amount owed, it will have a negative effect on credit scores.
@FireMedic1, I am not sure that I agree with the part in bold.
If you have satisfied a debt through an agreement to settle for less, the account should in fact not show a balance due. The creditor has, in fact, agreed you do not owe a balance, and can not report anything different as it would be incorrect. They should show a balance of 0, or no balance.
My opinion above is corroborated by RobertEGs reflection of the FCRA noted a few posts above.