Help .. unfair penalties, and interest

[brrrcold]

I am working on repairing my credit so I can buy my first home.

2003 -6yrs my life went in a funk (divorce). I ignored my debt and collectors. In 2008 I received money from a accident settlement and attempted to pay off all debts. Recently I found that one cc did not get paid through Capital One. My credit limit on that card was only $500 when I stopped paying I had about $400 in charges. On my credit report the outstanding amount shown is $2300. I called offered them $1000 because that's what I have saved and they refused and said the best they could do is $1800. Ok I understand I didn't take care of this debt but it seems absurd that they can demand $1300 in interest and penalties. ( The account shows closed charged off as of May 04 on my credit report)

What do I do? Is it worth to pay to repair my credit report? How do a negotiate a lesser pay off amount. Also did I resurrect the SOL on this charge off by inquiring ?

[Trish]

If that acct was charged off in 2004, then it is more than likely past the collecting SOL (look under your state's SOL to be absolutely sure though).....which means they cannot sue you for the amount.

No, you didn't reset the SOL by simply inquiring......so don't worry about that.
So.....what I would do is send them a DV letter demanding proof that the debt is yours. IF they can properly validate the debt then (IN WRITING) offer them the amount you're comfortable with in exchange for deleting the acct from your CRs.
If they refuse.....screw em. Having a paid collection on your CRs does NOTHING for your scores. It will not improve it one bit. You would be better off waiting for it to drop off from age......and if the acct was CO'ed in 2004....then it should be falling off next year sometime.