Can I take Legal Action?

Hello Everyone,

Just wanted to see if anyone can advise me on how to handle this issue:

I was contacted yesterday by a so called law firm/collection agency Nelson Hircsh & Associates. I was told that I owe a debt from 2005 to nofaxpaydayloan.com. The message that the woman left on my voicemail was and I quote" she is in the fraud division and there is a check fraud claim against me". ( lies) I am upset because I know I am an honest person but when she said fraud I was mad and very upset. I spoke with her and she told me that there was a court date of March 13th in TN( I used to reside but I currently reside in AL been here for 3 yrs now) and of course I needed to settle the account.(lie) I asked her how was she able to get my number in Alabama and I quote " the information was forwarded to her from the company" I know many people's information is in public records where they could get my address and she also stated she contacted my sister who gave her the number, I told her we talk everday she lives in NYC we can call her on three-way right now, another lie. I know its bs she is telling me. I told her to validate the debt and send everything to me in writing because I dispute this debt period. After going back and forth she transferred me to a person who is suppose to be operations manager. He tells me that they have a collection division as I asked him were they a law firm or collection agency. Then he goes on to say that there is no court date filed and payments were made when the other lady told me a date and that there were no payments made. I called back this morning to verify it with her again and she said samething she said yesterday making it seem like someone is lying to me as I told her. I really don't want to be long winded but I'm trying to give as much detail as possible. I would like to know if I can sue them for them falsely claiming check fraud that is a criminal lawsuit not civil which is what she is claiming. I am not sure if it is against law. They do not have any court papers to produce, claims that need to get it and then send it in the mail. I have no problem getting to TN to answer this issue in court. She told me I have to file a police report and send it to them if this is fraud which I told her to just send the documents so I can verify this is legally mine. I have taken out payday loans before and paid everyone. If anyone is familiar or can give me a little advice on what I should do. I not sure which laws apply TN or AL who do I contact. I appreciate it very much. I apologize for writing such a long post. Thank you.