Before you jump on the deal, you should if not already, call up capital one to make sure of the following:
who is handling your account, amount owing, and if the law firm owns the debt now or does capital still. You can further check if the company is licensed to do business. Make sure you have the initial notice from the law firm in writing.
Assuming capital one still owns the debt and they just hired the law firm to collect, here is my breakdown.
When you have an account in collections, the debt is usually written off with an R9 rating, meaning it will stay there for up to 7 years.

Even if you settle the debt, the only thing that changes is the note on your bureau for the capital one account, which will state "account settled".

If however, the law firm owns the debt now, I have no knowledge in this field. You should probably contact either a lawyer or consumer services in your province.

You can probably settle for $600 or even less. Four year old debt? That's not likely something the creditor expects to recover. It's probably been bought a collection agency that uses Natalie Law Firm in Ontario.

Don't let the law firm part scare you she isn't suing people in BC but they threaten everyone equally.

If this was credit obtained in BC then you can probably settle it for about 50% of the principle considering the age of the account here. Or you could wait the two years for the account to go stat barred and not pay anything.

Unlikely the creditor would sue you in BC for such a small amount unless they're using small claims in BC and really believe they could recover the whole thing.

So, I recently recieved a letter from Natalie Law Firm.

One of their nicely done up draft statements, that have due dates that are always past by the time I recieve the letter.

The bill is for a Credit Card I had with Capital One when I was 19. The card limit was 750$, and over the years built up the intrest to around 1300$. Its been about four years.

Natalie is offering me a buyout price of 935$. I'm wondering if their ownership of the debt is valid, how would I find this out?

Also, if I pay them will the debt in honesty be erased from my record?

I really want to get this fixed, but I don't want to jump into something as far as these Debt Collectors go.