Legal Question in Credit and Debt Law in Pennsylvania

No. How is your character defamed? And how has the creditor breached its offer?

Charge-off is just an accounting term. It means that the debt moves to the bad debt side of the creditor's ledger. It does not mean you don't owe the balance of the debt or that it cannot be sold to a junk debt buyer. And it does not mean that the debt cannot be reported on your credit.

You have already probably made a mess of this but ... there is a mechanism for correcting your credit report. First, how is the debt being reported? It should be reported as paid/settled for less than full balance or similar words. If the debt is still showing as unpaid then you can dispute this by sending a certified letter to the credit bureaus disputing the reporting and ask that the debt be marked paid/settled. Include a copy of the settlement letter and your cancelled check.

If your report is not revised in 45 days, then you send a certified letter to the creditor advising that it offered a settlement (attach a copy of the letter) and that you accepted by paying the settlement offer (attach your proof) and state that your credit report is still showing the debt as unpaid. Ask them to correct this in 30 days. If the creditor still refuses, then you can sue the creditor for providing false information to the credit bureaus.

You must follow this procedure in order to be able to sue though.

If you are complaining of something else, then you either need to repost the relevant facts and disabuse yourself of ridiculous notions of suing for defamation or else you need to speak to an attorney who specializes in consumer/FDCPA/FCRA issues. There are several here at Law Guru but I don't know where you are at in PA - if you are in the west, you might try Attorney Greg Artim. If you are in the east, you might try Attorney Lawrence Rubin.