help on next steps

Have you tried calling applied bank to verify placement with Powell, Rogers, and Speaks???

You are NOT required in any way to send them information in order to dispute the debt. This is a collectors trick to get you to validate the debt for them. Don't fall for it. Midland and NCO tried the same thing on me. Make sure you keep that letter. It might come in handy later.

Those letters are terrible. Use this one

http://www.debtconsolidationcare.com/settlement/writingaproperdv-disputeletter.html