Honestly I would settle with them if they are allowing it and then get it removed later if it still reports you want to try to avoid pfd if possible especially if you want to try to get back good with them later
Creditors (or a consumer) can close a credit card, which thereafter prevents further new charges/purchases.
Closing does not "cancel" the account, and any unpaid debt continues to properly be reported and included in your percent util calculation.
You can informally contact the creditor and request that they delete their reporting of an account.
They may agree if the debt has been paid, but usually wont if a balance remains.