This is not a proper case for requesting a DV because there is no apparent debt collector involved. Requests for debt validation apply only to debt collectors.
The fact that a charge-off was reported tells you very little except that they took a tax writeoff by an accounting measure that enabled them to shift your bad debt out of the assets receivable column of their accounting ledger, and that they chose to report their determination that your debt was "written-off" as uncollectible to the CRAs. The fact of the prior charge-off does not affect their ability to continue to attempt collection of the entire debt. It means they werent happy, and reported that fact to the CRA.
Apparently, you dont contest the accuracy of their reporting of the debt, and of its delinquency status at the time of their charge-off. Thus, regardless of whether you reach settlement of the debt, there is no obligation on their part to delete the prior reporting of its charge-off status.
What you are facing is the unknown.... how they will pursue their efforts to collect on the debt. Since they have contacted you, you can assume that further actions on their part are in the mill. They can do one of four things. They can just continue to contact you and attempt to collect, they can refer the debt to a debt collector for their actions in recovering the debt, they can sell the debt to another party, or they can bring legal action to attempt recovery through the courts.
Of these, the first one I would address is their ability to attempt collection through the courts. You must determine if the debt is still legally obligated. That is done by determining if it is still within the statute of limitations under your state law. If it is still within SOL and they bring legal action, you will have to address the issue of its validity and face the chance that the court will order its payment. However, if your state SOL has tolled, you can defend any legal action by showing that your state SOL has expired, and thus the debt is no longer legally owed. Apparently your first default was approx 5 years ago. What is your state period of tolling of the SOL on revolving debt? YOu need to know that.
As for referral to a debt collector or sale of the debt, if they take either of those actions, then the debt collector can report that to the CRA. That has cumulative effect on your credit score, compounding the previously reported CO, and will cause significant further damage to your credit score. Once a collection or charge off is reported, then subsequent settlement of the debt does not delete that reporting from your CR, and thus wont recover the scoring damage. You can attempt to get the OC to delete the prior reporting of the charge-off by offering to pay the debt in exchange for their agreement to delete their prior reporting. However, that is an additional condition placed on paying the debt, and if they are now balking at the level of your settlement offer, adding on an additional concession that they also agree to CR deletion does not seem realistic unless you substantially increase your monetary settlement offer.
I see the strong possibility of futther action on their part, and possible further damage to your credit. If they are unwilling to settle at the amounts you have offered, you either up your offer or take your chances.
