I assume that your dispute involved the correction of the current balance to reflect the balance owed after reconciliation based on their sale of the vehicle. If so, then the current balance reflects what you still owe.
For revolving accounts, closing of the account represents a substantive change, as it thereafter precludes the consumer from making additional charges, and thus further increasing the already delinquent debt.
However, with an installment loan, there is no issue of the consumer continuing to use an "open" card to further increase the debt, as the debt cannot unilaterally be increased by the consumer.
"Closing" an installment loan is usually a matter of the creditor terminating the regular monthly payment terms, and demanding full payment due to default. It does not have a substantive effect on the amount of the current debt.
Since they have repoed and are now demanding full payment of the delinquent debt, then yes, I would agree that the account should be reporting as "closed" to the installment terms previously in place.
However, disputing and correcting the status to closed is not likely to have any scoring effect.
I would question your assumption that any recent score impact is due to the reporting of Open. That does not affect the continued amount of the debt, or its delinquency status. Impact of their last reporting was more likely due to the postive update of the account to show continued delinquency status, thus impacting its scoring under payment history.
Status of Open or Closed likely did not effect scoring.
Correction to show closed will emphasizre the fact that the account is delinquent, with full payment being demanded.
Personally, I would not dispute. I would not become contentious when you may still be seeking good-will or settlement concessions on their part.
