Should I pay this CA? Help. Read all the beginners stuff

[has78]

I have read all the newbies section including the Doc's seminar. Spent a few hours looking through posts but I still need help.

Here is what I have done so far.

Pulled all 3 credit reports
Opted Out
disputed all addresses except current one.
disputed negative information on my report to the CRA through letters


My situation .

I had a HSBC card that was charged-off and sold to Arrow Financial a couple of years ago. I called HSBC and tried to deal with them directly but they told me there was nothing they could do and I had to contact Arrow Financial. Once I contacted Arrow Financial they told me the the debt had been sold to Capital Management.

I know here is where I probably messed up but I called Capital Management and told them I didn't have much money but and I'm not sure were this debt is coming from but wanted to know what they could do on the Collection amount. They offered to settle for $289 compared to $715. The manager would not budge lower than that. He told me to send the money and asked for my checking account or debit card. I told him if he could mail me the settlement letter or fax it first so I know they own the account. Well they said they faxed the form but I never received it


Here's were I need help

I have no idea what to do here. I looked at the SOL and its 3 years for VA. The debt is 2 years old. HSBC shows as a charge-off on my credit. Arrow shows the HSBC collection my credit but I don't see Capital Management on my report.

HSBC (original creditor) sells the account to Arrow (collection/junk debt buyer) and then sells to Capital Management(collection/junk debt buyer) but Arrow showing on my report.

What do I do here?

I can't send a validation letter right? Because the last time they sent me a letter, it has been more than 4 months and I didn't have the money to settle.

Help please. I have searched and read and tried to do everything suggested in the newbies sections but need some guidance.

[chane]

You have already disputed both the OC and CA accounts with the CRAs and they came back verified?

[has78]

Here is a snippet from my credit report

Closed Accounts
Account Name Account Number Date Opened Balance Date Reported Past Due Account Status Credit Limit
ARROW FINANCIAL SERV
Show Details HSBC CARD-4347XXXX 09/2008 $722 09/2009 $722 COLLECTION ACCOUNT
HSBC BANK
Show Details XXXXXXXXXXX 10/2006 $0 12/2009 CHARGE-OFF $0





After I disputed Experion updated the status of the Arrow Account

Experian Collection 06/08/2010
View/Hide Details
Collection information has been added to or changed on your credit file.
If you do not have a past due account that may have been sent to collections, contact the collection agency reporting the collection account as this may be sign of fraud.
Company:
ARROW FINANCIAL SERVICES Account#:
Balance Amount: 722
Status:

[chane]

Experian is very difficult to deal with. You could try a pay for delete with the CA. You could also try disputing them again or a 623 dispute with the OC.