Was the terry towel new or used that scratched the paint? I think a lot of people forget that most likely the towels have been washed (if used) and if a powder detergent is used then it will scratch as some of the "grains" of washing powder get trapped in the fibers. We ALL know that powder detergent is a BIG no no when washing microfiber towels because of this reason.
But yes, I've used terry on occasion. Hint--They work best when just taken from washer after a fast spin cycle, when they're ever so slightly damp

A slightly damp terry will absorb MUCH quicker than a dry one.