Help with National Recovery Service

I am in Michigan and had a PDL with Bayside Loans, which I know operates off shore and is not licensed to do business in Michigan. They are illegal as the day is long. I borrowed $1000 total from Bayside Loans and have paid back over $1300 before I started reading this forum and got smart. Anyways, after sending letters to Bayside Loans (the ones I saw on this forum) and trying to deal with them directly, I was notified they turned my account over to National Recovery Service. This is the e-mail I received from National Recovery Service today. I blocked out my personal info for security purposes.

NRS Account: xxxxxxxx


Client: xxxxxxx - CAPTURE FINANCIAL, LLC

Original Creditor: [URL="http://baysideloans.com/"]Baysideloans.com[/URL]
Client Acct#: xxxxxxx
Placement Date: 7/7/2011
Balance: $378.125

Dear _________,

The above referenced account has been referred to our office for collection of the balance in full. Previous attempts have been made by our client to resolve this debt voluntarily. As of this date, those attempts have not been successful. Therefore, your original agreement with the above mentioned creditor has been revoked. Your Teletrack as well as your credit bureau reports could also be affected. You have a possible settlement opportunity, call to inquire. 877-206-1440

As required by various state laws: you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.

National Recovery Service has been authorized by our client to provide every necessary effort to recover this debt. We recommend that you take advantage of this opportunity to pay the balance in full to prevent further collection activity. Please remit a copy of this letter with your payment to the address listed above.
You can use this link to go directly to our bill pay site:

[URL="http://www.nationalrecoveryservicesllc.com/docs/billpay_form.php"]http://www.nationalrecoveryservicesllc.com/docs/billpay_form.php[/URL]

Your Teletrack/Credit Report(s) will be updated.

Note: If payment of the balance has already been made, please notify this office at 877-206-1440 to avoid further communications.

You can use the button below to chat directly with a live collector:
By using this link you are connecting with a debt collector any information obtained in the chat will be used for the purpose of collecting this debt.

[URL="http://server.iad.liveperson.net/hc/56516513/?cmd=file&file=visitorWantsToChat&site=56516513&byhref=1&imageUrl=http://server.iad.liveperson.net/hcp/Gallery/ChatButton-Gallery/English/General/2a"][/URL]

Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice, this office will: obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request this office in writing within 30 days after receiving this notice, this office will provide you with the name and address of the original creditor, if different from the current creditor.

I know that I do not owe this company any more money. I have paid back the amount borrowed and then some. What do I do now? How do I get these people to go away?? Please help!! Thank you so much for your time.