If a creditor accepts a payment, regardless of whether for the full amount of the debt, or for less than its full amount, as full satisfaction of the debt, they have excused/cancelled any difference. The statment that a debt is fully satisfied does not mean that the consumer paid the entire obligated debt.
They are entitled to report the fact that they acdepted less than the full amount as satisfaction of the debt to your credit report.
It informs others that, in the past, you failed to pay your entire, obligated debt, so yes, it is a derogatory statement that could have impact on a lending decision by a prospective creditor.
It is an accurate statement, and thus not disputable. You would need to get their GW agreement to delete that optional reporting.
Sending a frivolous dispute is not apt to foster much GW on their part.
