What is limitations in collecting

Check on what the Statute of Limitations is for your state. In most cases, it's 7 years. This means that once you pass the SOL, the creditor can take no legal action against you, but if you make a payment, the clock starts ticking again.

What state are you in? Statute of limitations varies by state, but I can almost guarantee it has run in this case. You should send them a letter requesting validation. If they are willing to reduce the total by that much, they paid less than pennies on the dollar and are making a hefty profit even with the offer they have made to you. Request validation - let us know what state you are in, and we'll let you know about the SOL where you are.

Some states have as long as 15 years on written contracts. I think this might fall under that category since it was an auto loan but I am not sure. It really depends on what state you are in. Many states are 10 years or less on written. Chances are you are protected by the SOL now though. Just make sure you never agree to make payment on the debt and never affirm the debt if you are outside your states time limit. Personally I would ask them to validate the debt and send them a cease and desist letter. By doing both of those they can not contact you about the debt legally unless it is in writing or by suing you.