Discover chasing old debt - need advice

Hi all

Thank you for all the info on this forum! Lots of good stuff here.

I recently received a letter from FMS offering to settle on an old (probably 9-10 years) Discover card bill. I have seen it listed as charge-off on a credit report a few years ago, dont know if it had been sold off to a CA at that time. I will try to find that if it is of concern.

I sent them a DV letter, they then sent a response that they are no longer persuing collection and are returning it back to the original creditor. All good so far!

Then DFS Services, LLC (I assume thats what Discover is called now) sent a letter saying they reviewed the account and that they are reporting accurately. They state that they are removing the trade-line from the credit reports but I still need to pay them. They include a copy of the original signed application (suprised me!)... and stated that due to the age of the account statements are not available.

So....

Are they grasping at straws? Can they do anything?

If the OC sues in court, do I still bring up the SOL / time-barred defense, just as if it were a collection agency?

Should I send a response to their letter? I know the FDCPA rules dont apply to OC... Is there another letter I should use?

I currently live in PA.

Any other info that could help is much appreciated!

Thanks to everyone !