Charged off debt that is now in Palasades hands

If it's 10 years old, the SOL should be expired. Do NOT promise to pay or make payment arrangements becuase that restarts the SOL. I think....You should send them a DV letter, so they can break down the fees and why they jacked it up so much. Did you get any kind of letter from them when they bought the debt?

Absolutely have them validate the debt. Have you made any payments at all on the account in the past 10 years? What state are you in?

My guess would be that they have gone back to the original debt and calculated interest through all the years. Other collection companies that left it at the same total did not add interest; Palisades wants to make a fortune on a debt that they have purchase for pennies (or less) on the dollar.

There is ALWAYS room for negotiation and settlement. You CAN get all of those additional charges backed out. They will try to talk tough in the beginning, but you need to stick to your guns, make them provide ACCURATE validation, then proceed. My gut tells me they will not be able to validate the debt, though.

If you use the sample letters, you should get them to back off. They may try to come back and mess with you a little after the first DV letter by trying to get you to complete identity theft / fraud paperwork - DON'T FALL FOR THIS TACTIC. Send them a second DV letter telling them that you requested validation and you are waiting for it - then remind them that they cannot, by law, continue any collection activities until they have provided the requested validation. That's probably the last you will hear from them.

All of this is contingent upon the fact that you have not already accepted responsibility for this debt, agreed to any payment plans, etc.