My question involves collection proceedings in the State of: MN, AZ, WA

Information:
Apartment Damage (grease fire that resulted in replacing stove hood)
When/Where: The bill went into collections 2001. The apartment is in MN.
I've since moved to Arizona and now into Washington.
Amount: $3xx

The amount isn't really the concern, if I had to I can pay it. The problem is I forgot all about the bill and it is now past the 7yr mark for my credit report and for the SOL. I morally would like to pay the bill but if I do I'm afraid it will go back onto my credit report.

I was contacted by Xxxxxx Financial Group last week and they stated that they just got this debt and if I decided to pay on it they would instantly take off 10%. Well since the information I gave to them was my name and then they offered a discount a little flag popped up said something is odd.

I asked them to send me letter with the debt information. While waiting I decided to call back and ask what year the debt was from. They said it was in collections back in 2001.

I stated, "wouldn't that be under the SOL" and the guy said that it might be and that he isn't trying to "stir up anything". He also said that no matter what it will remain on my credit report until it's paid.

I got a call today saying that if I paid they would drop it 20%. I informed this lady that I believe that the bill is under the SOL and that "we" are waiting for the letter to review before I can verify or take any action on the debt. She instantly asked me for my lawyers name and I stated that I did not wish to give the name of the person that I'm talking with at this time. She became rude and asked two more times and stated that I shouldn't be "spouting out things that aren't true." I was just referring to my grandfather but didn't want to say so because I figured it would lead down another belittling path.

Sorry for the possibly useless information just wanted to divulge as much as possible.

So with all of that being said I'm not sure if I should pay it because they are going to find some way of forcing it back onto my credit report (after making them mad ). Or if I should file a C&D letter. Any thoughts?