Bank risk status remains permanently after paying off loan

In the last 2 years I had a personal loan account that went to legal due to non-payment but I kept the payments up to date. In December I was offered a discount of 50% from FNB to settle the account which I took up and paid off my account. I received my settlement letter in Feb from FNB so I thought all was good. Only to find out my FNB account is still in RISK status. I inquired and they said it was because the amount was written off. I asked them for how long will account be in RISK status and they said forever as long as I have my account it will remain there. That means for the next 40 years of my life I can never apply for any loan or credit card for myself or a business ever again. I can understand if they kept it in that status for a few months but not forever. That's ridiculous. Even judgments are cleared after 5 years but because I settled my loan with a discount I am now penalized for the rest of my life?