Paid derogatory accounts

[Anonymous]

I, depsite all recommendations to the contrary, elected to pay in full 4 deragatory accounts in my history - a small car loan balance and 3 credit cards. Recently as the credit bureaus received and processed the updated information from the creditors, I've noted a difference in how the credits are updated the bureaus. Specifically, all three credit cards updated the "Account Status" to "Closed - Paid," whilst the bank with the auto loan has left the account status as "Closed - Derogatory". 

What is the proper "Account Status" classification for a paid-in-full derogatory account? When I called the bank to inquire, he stated that the account status must remain that way because the account, at one point, was closed derogatory - despite it's current status as being paid in full. I advised him that there are other metrics in the account information supplied, such as "Payment Status" still showing "Collection/Charge" wherein my credit score is taking a hit - but that a settled account should no long be listed as derogatory.

Can any please confirm how a former derogatory acccount that has been paid in full should be noted under "Account Status"? Should I dispute this with the credit bureaus? 

[RobertEG]

There is not a single "account status" at play, but rather two separate status codes.

Any account has a current status, which is a snapshot only of the account status as of the last reporting.  It provides no historical information of any prior status.

Current status of an account that is paid (no longer delinquent) is paid or pays as agreed, neither of wich is a derogatory status.

Payment of the debt on a formerly delinquent account will thus not include a derogatory notatation.

However, when an account with a last reported current status of derogatory is paid back into good standing, the prior derogatory status is retained under a separate code called the "payment rating", which advises others of its prior derogatory status when it was paid.

And, of course, the prior derogs that resulted in the prior current derogatory status are also retained under their own reporting codes.