Background: I owed money on a car when I left the USA for a job overseas. I tried to sell it before I left but failed. I called them and did a voluntary repossession which payed off part of what I owed. To pay the rest, I offered them a settlement (over the phone, unfortunately) which they agreed to. After I sent them the agreed upon amount, they didn't contact me after that, and the debt remained on my credit reports. I've called them twice since, and each time the person who answered apologized and promised to remove the mark on my report and send me the paperwork for the agreement. They never sent me anything and then negative mark is still there.
Last month they gave my debt(which shouldn't exist) over to a collector. They tried calling but since I'm on the other side of the world I was asleep. They later sent me an bill/invoice requesting payment in full. I responded with a DV letter, and they mailed me back a copy of my original lease for the car.
I don't think I have any options besides ignoring them (let it age off) or making a settlement offer(30% of original balance?). I am definitely not paying them the inflated amount they are asking me to pay.