Old Debt Settlement Offer - Asset Acceptance

Hello everyone!

This looks like a fantastic forum. I usually search for answers before posting, but since most credit situations are unique, I would feel a lot more comfortable to get specific advice and hope I'm in the right place.

I opened a store credit card account for a purchase in January of 1999. It was the only thing charged on that account, but unfortunately I never paid it (off). The current balance according to Asset Acceptance is about 4000 dollars (lots of interest accrued).

The account was opened in Mississippi, but I have been living in Georgia for about 10 years, and the reason I mention this is because I read something about Statute of Limitation. Over the years I have received collection letters for this debt from Asset Acceptance. A family member back in Mississippi recently received a phone call from them claiming that I am being sued, however they have my address and have not contacted me about this. They now sent me an offer to "close my account and consider it paid" for only $199.

This is obviously a great offer, however I am also reading that this might actually hurt my credit at this point. Thing is, Asset Acceptance or the original store account does not show on any of my credit reports (Equifax, Expirian, and TransUnion) and my Fico Report does not show any negative accounts either, likely because it has been so long? The one thing that does show on my report is a recent credit score inquiry made by Asset Acceptance. I have worked hard on paying off all my other credit cards and other debt over the years and now have an excellent credit score.

My main concern is the phone call claiming that they are suing me. Can they still sue me after so many years and should I go ahead and accept the offer, or is it a trap by acknowledging debt?

Thanks so much in advance!