I sent in a goodwill to ally financial to try and get some late payments removed which turned out to be a huge fail but I logged on yesterday and I seen my score had dropped 4 points due to them reporting the dispute? I didn't know this could happen... I found some lates that they reported as 30 days that were actually 15 that I plan on disputing but will that just decrease my score as well???
Wait a minute, did you dispute the account or just request a goodwill? If the later, I would call Ally and complain that's not what you were trying to do.
When you dispute a TL, certain elements of that TL are then excluded from scoring. So it is possible to see a decrease while the item is in dispute. Once the investigation is complete (~30 days) you will see the full affect of your dispute results.
It's clearly being treated as a Dispute. I would wait until the process runs it's course.