It'll affect his credit rating if there's an unpaid balance in collections. He's reporting that the report is fraudulent in the hopes that it won't hurt his score. I don't have a lot of faith in the credit rating system though, so I'm skeptical that it'll do any good.
It should do him a lot of good if there is knowledge in the industry that this company is posting fraudulent charges and not resolving consumer complaints satisfactorily.
