Pay day loan help in texas!

So I defaulted on a few internet payday loans a while back, but now im starting to be able to take care of them now that im working again.
The first one im working on is Cash Central(balance is $385.82 and is currently 242 days past due). I recently got an email from them stating they were going to turn it over to a collection agency on the 13 if arrangements werent made. So I called them up today to ask if they had reported it to the credit bureaus, and the lady said yes. I told her I would pay it in installments in full if they would delete it. She said no they just do PIFs, and they would offer a settlement. I told her basically that why should I pay them, if in a few days it will get sold to a 3rd party collection agency, and when that happens, I can just pay them less or have them delete it. As I understand it, they(the 3rd party CA) cant report it to the CBs for the first 30 days after they get it anyways so I could just pay it then in that window and not have it reported by them, since Cash Central would have to delete it once they sell it. Is that correct?
The next one im working on is Little Loan Shoppe. Im not sure if they are licensed in Texas or not as pdl or cso, from other posts ive read, I dont think so, or at least not at the time of those posts. Does anyone know or know where i can check? If they are not, then all I would have to do is pay back the principal correct? This is the email they sent me when I tried to contact them.
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Thank you for your recent reply. After a review of your account I see that you received a loan from our company on 3/10/11 in the amount of $300. Per the contract you signed you agreed to the terms of the loan for 20 installment payments of $105 with the option to pay in full for a lesser amount at any time. The installment process was automatic and continued until the loan reached the full 20 installments. Due to your loan being past due and in default, your current balance is $2075. The balance includes the original principle, fees owed, and any NSF fees from payments being returned from the bank.
We request that you contact us as soon as possible for a payment plan and resolution to this long over due account. We offer many different payment options and I would be happy to assist you with going over these options. We may also be able to offer a SETTLEMENT on this account if you contact us to set up a payment plan. I look forward to working with you soon!
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Any suggestions on how to deal with Little Loan Shoppe? On a side note, when I googled them, I came across an article about them being under SEC investigation recently, and am wondering if this could have any bearing on when or if I should pay them back?
Your expertise is welcome and most appreciated in advance guys!!!