Seventh Avenue review: Inaccurate credit reporting 7

Seventh Avenue has been reporting a charged-off debt of $253 on my credit report since 2005, and I have been disputing it with the credit bureaus since 2005. I never bought anything from Seventh Avenue - never even HEARD of them until they appeared on my credit report. Each time I disputed the charge, I requested that they send me some type of proof that I had purchased something from them. They responded to each dispute as "debt confirmed as accurate" but would never send me anything else. Since it was the only blemish on my credit report, it was not causing much of a negative effect, so I haven't pressed the issue, beyond sending the dispute letter every few months. However, it now appears that the company has found a way around the seven year limit for reporting derogatory information! A few months back, my credit report showed that this would drop off in November of 2011. Last month I checked, and the "drop off date" had changed to March 2012. Today I checked and the date is now August 2012! Deciding that this item would NEVER be deleted from my report, I searched until I found a number for the company and contacted them by phone. Naturally, with this being from 2005, they have NOTHING to send me as proof that this is my debt. BUT they still refuse to remove it from my credit report and offered only to send me an "FTC packet" to dispute the item - even though they confirmed that their records show I've been disputing it since 2005! When they get the packet back from me, then they will CONSIDER removing the item. How can it be legal for them to continue reporting this when they can't provide proof that I ever bought anything from them?