e-payday-loan and Evans Law Assoc.

I have received a phone call from Evans Law Assoc. regarding collection of an unpaid loan I had with e-payday-loan. They left a message and I called them back. I googled them on the Internet and I didn't like what I was reading - complaints and lot of angry people. Also, their BBB status was F. So I mailed them a certified letter requesting a debt validation. The letter was received, and today I got a phone call from them again (even though I asked not be be contacted). I again requested a debt validation letter, the lady said she'd email it to me. I received an email soon after the conversation, however it was not a debt validation, but a settlement offer. The original loan was for $350, current balance (according to Evans Law) is $620 and they would settle for $430. However, I am still very suspicious because they did not provide the debt validation as I requested and as they promised. Are they required to provide it if I requested it? Also, what should it contained (I asked to provide debt info as well as their license info)? And finally, what if they refuse - what are my options then. I just don't trust these people, but I do not want to mess up and end up in court. Any advise will be appreciated.
PS: is e-payday-loan legal in PA and if it is not (which I suspect) what are my options when dealing with a legal collection agency that is trying to collect on an illegal loan. I certainly want to pay it back and I clearly stated so, but at this time I am in the middle of paying off some of my other payday loans and I do not have any extra money - and Evans Law demands one lump sum payment.

If you cannot advise me but have some questions of your own regarding e-payday-loan or Evans Law, please start your own thread so it does not get cluttered and mixed up. Thank you.