ARA Inc (Asset Recovery Associates)

My mother received a collection letter from ARA Inc stating she owes $4300 to Household Finance with an approved settlement amount of $2100 and accepted monthly payments of $50. She does not recall having an acount with Household Finacne or what it could be. She called to find additional information about this. The person didn't give the name of the company nor give her name to my mother. My mother didn't think to ask either. After talking with the person and being transferred to the fraud department, this is where the situation gets a little weird like it is a scam. The person explained this was a loan that was taken out in 1993 and my mother had been paying on the loan for 7 years and then stopped paying. Now they are trying to collect on the debt. When asked why my mother owes $4300, the person explained the original loan was for $2000 and the rest is interest that was charged over the years. Loan amount of $2000 with payments for 7 years. Yeah. Anyway, the person offered my mother a one time settlement to pay while on the phone of $1200 and that would be the end of it. My mother kept explaining she doesn't owe this at all. The person kept asking my mother if her SSN was such and such. It wasn't. Then she asked if her address was such and such. Again it wasn't. Then the person came back with my mothers correct SSN and address and tried to tell my mother she has two SSN and two addresses. Wrong.

I told my mother to send a debt validation letter as she doesn't owe this amount, has never had a loan with Household Finance, and if this is all correct, the SOL has long passed.

Has anybody came across this company or heard anything like this?