If they're willing to settle for $250 without it going ,on your credit report, I'd take that. Does the letter state it won't be reported if it's paid now? If not, get that in writing before you pay them. Are you out of your SOL for your state?
SOL - statue of limitations
How long the OC has to be able to legally sue you in court. It varies from 3-7 years, depending on your state. If the debt is older than the SOL, they can't force you to pay. And if the debt is close to seven years old, it's going to fall off your report very soon. This kind of debt is called zombie debt, and unscrupulous debt collectors add this to people's reports to get them to pay, even though they don't legally have to, because most consumers don't know any better.
How long the OC has to be able to legally sue you in court. It varies from 3-7 years, depending on your state. If the debt is older than the SOL, they can't force you to pay. And if the debt is close to seven years old, it's going to fall off your report very soon. This kind of debt is called zombie debt, and unscrupulous debt collectors add this to people's reports to get them to pay, even though they don't legally have to, because most consumers don't know any better.