Loan Shop Online, need help! - LOANSHOP/ANTILLE 8008069971

got a $200 loan on 3/4/2010 from "LOANSHOP/ANTILLE 8008069971", also known as Loan Shop Online. I replied to the email authorizing the FULL amount $200 plus the $60 fee to be taken out of my account on 3/26/2010, and $260 was deducted from my account on 3/26/2010. I assumed everything was settled.. On 5/26/2010, I received a phone call from "HCS" a representative named "Charles Watkins" with a call back number of 914-371-6826, gave me my case # for a lawsuit they are putting against me for the amount I borrowed, $200. They said that they only deducted the fee, $60, and not the principal amount. He then transferred me to his "manger" who then began reading me my banking account and routing numbers and the date the deposit was made. They were clear in saying that I could not interrupt while they were reading this information, as if they were going to edit our phone conversation. Obviously I kept saying it was not true and I have proof of the email authorizing the full payment to be made, and also the debit of $260 from my bank account. They said I could either pay the $200 now, or it would cost me around $6,000 to have legal representation in court to fight the claims. He then wished me luck and said "God Bless you". I'm a little worried about this whole situation. I do have proof of everything, so I am covered there but does anyone have any suggestions on what I should do?