I have a debt from 1999 - it was an honest mistake on my part. I owed $250(ish) and moved. however mail forwarding was still in place.

In 2006 (!!) ARO calls me says I owe them $800ish for this debt that was given to them in 2001.

I tell them that is rediculous to have been so long in getting a hold of me (my current phone # and address are on my credit file since moving in 1999), and that we need to negotiate this bill - I advised I'd pay principle without question. They advise they'll call me back.

July 2008, ARO calls back saying I owe them $1000 now. They'll take half to close the account.

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Is this debt past SOL or has it 'reset' in 2006 since I said I'd pay principle?

Can ARO put this on my credit history? It's not on there now nor has it ever been.

Advice? (I'm applying for a job that needs a clean credit history... but at the same time, I don't want to give these guys more $$$ than they deserve - not to mention my ex-wife is expensive so every little bit of $$$ counts).

Thanks for any input!