My name is ***** ***** I'd be happy to answer your questions today. I'm sorry to hear that this happened.
Because the report is incorrect, and it's not just an old debt that's been paid, removal would mean it will be deleted as if it never existed. Your credit score should be returned to whatever it was before this happened.
The Fair Credit Reporting Act requires a credit bureau to investigate and remove incorrect reports from your credit report. If it's still there, then you may want to file a second dispute or talk to a supervisor (I wish I could say that it's as easy to remove incorrect reports as it should be, but people frequently have to file multiple reports).
Here is an article on writing a final demand letter to the credit reporting agency AND the landlord, letting them know that you'll sue for Fair Credit Violations if they do not fix your report. If the letter is sent via certified mail, they may realize that you're serious about this.
There's a sample letter here (scroll down to #3).
If you're forced to go to court, federal law allows you to seek damages of $100 to $1,000, plus attorney's fees and punitive damages
. 15 U.S.C. 1681n. That's something you can specify in your letter (you can even print and send them the statute).
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