Yes it's true, as @RobertEG will tell you, the CRAs explicitly instruct the CAs/OCs NOT to delete just because a debt is paid. Doing so would violate the contract they have with the CRAs which state they must report accurately, and deleting a CO because it was paid off "would not paint an accurate picture" of a consumer. That said, the law also says they don't have to report at all...so the only other recourse here would be GW letters and hope someone bites and empathizes helps you out.
Right, GW after you've paid and it's been processed and everything on their end, which can take up to 30 days usually. Once you PIF or settle, they will automatically notify the bureaus once it's processed and everything on their end as I mentioned.