LTD Collection just showed up

[designated_knitter]

I opened a crappy credit card back in 2015 -- Milestone Credit card with a CL of 300 bucks.

As near as I can tell from my CR, the last payment I made was January or February of 2017.  SOL for my state is 3 years so I'm less than a year away from SOL.

Got an alert today that LTD placed a collection on my EX in the amount of 840 bucks!  (for a 300 CL CC?)

I think I talked to these guys on the phone a couple of months ago and they were real <fill in your favorite non-family-friendly-noun>!  I did not admit anything and did not offer to settle or make a payment.  Yet, I doubt they are the most ethical of companies since they originally left one of those messages saying that I needed to be at my place of employment between 1-5 so that they could serve me with papers.  

They took over the account in October and claimed to have sent me 2 letters which I honestly don't remember having received.

Questions:  

1. Do I leave the collection until after the SOL has run out?
2. Does anyone know whether this agency will do a PFD? 
3. Given that the balance is soooooo out of line with the CL, can/should I dispute based on the amount owed?

I won't be applying for any credit any time soon.  However, I did just get a secured Discovery card and would *REALLY* like to graduate with them in a timely manner and wondering if this would screw that up.

Thanks in advance for any suggestions/advice.

[RobertEG]

Debt collectors are permited per FDCPA 808(1) to add additional amounts (e.g., interest and fees) to the principal amount of a debt that is under their collection provided that the additional amount is specifically authorized in the contract with the creditor that created the debt or is permitted by law.  The simple fact that the current amount of the asserted debt has increased is not per se basis for dispute of its accuracy.

You need to review your contract with the original creditor and determine whether it included provisions that permit assessment of any additonal amounts.  

Whether or not to delay any payment or negotiations until after expiration of SOL is dependent upon numerous factors, such as whether they might bring civil action, the legitimacy of the debt, whether they will PFD or settle for less, and whether payment might be required as a condition for approval of some other credit you might be seeking, such as a mortgage.  

Additionally, scoring implications would also, if they wont do a PFD, depend upon whether or not they have done a recent update of their reporting of the collection.

[Anonymous]

More than likely the OC let the interest rise plus late fees and annual enrollment fees and some cards also have stipulations that if there is a late pay the interest can shoot to a silly APR amount which I'm pretty sure Milestone is one of them that goes to 30%. If they did attempt to serve papers or are going through courts they could be adding in those fees as well.