Crazy or valid response to DVL?

I have been learning so much from this site and I want to say Thanks again for all of the moderator's helpful advice!
I sent a post some days ago about an MMG Marketing that I had a loan with. My bank account closed up before i knew it with so many loans and i am now on thre road to recovery with a few loans to clean up. I was contacted by claims person from a collection company I guess by the name of Hoffman Swartz and Associates. I was informed by phone then sent an e-mail (On 10/15) stating this: That HS & Assoc. XYZ has made the decision to file a lawsuit against you regarding and outstanding check drawn off of your Bank One account ending in xxx0565. We have agreed however, to accept two (2) installments one of $150.00 and final payment of $250.00 as payment in full. ***NOTE ****(My initial loan was for $350.00, where did this additional fee crap come from??)
Anyway, I did send a letter DV letter 6 working days later with the usual format and requesting the following:
*What the money you say I owe is for;
*Explain and show me how you calculated what you say I owe;
*Provide me with copies of the original contract;
*Provide a verification or copy of any judgment if applicable;
*Identify the original creditor and their account number for this;
*Provide me with proof that this account has been sold or assigned to your company;
*Show me that you are licensed to collect in my state (Illinois)
*Provide me with your license numbers and Registered Agent
How do they respond you ask, think i got an answer to any request?? Here is what the same claims person sent me:
I regret to inform you Mr Jones, that the the items you are asking for at this late in the game I can not honor. My job is to locate your whereabouts and advise you that our company will be requesting a summons be served to you appear in court. The information you are requesting at this time is being held as evidence and will be shown to you by your legal counsel prior to trial. They will offer you, at that time, the ability to look at the check, go over the contract. It is no way fashion considered harrassment, when someone of your stature has broken the law, and our company has to put in man hours to find you, because you didnt handle your business in an appropiate matter as deemed by the contract you signed. Now per the contract you signed when you obtained that payday loan, you said you understood and agreed to the terms/stipulations of the contract, sir. Now you breached your end of the deal by allowing you check to bounce. So therefore, my client was unable to recover the face value of the loan from you, which is considered DEPOSIT ACCOUNT FRAUD, sir. Therein, resulting in Nsf fees, collection fees, etc. Now this was placed in their inhouse collection staff within there company, which under the FDCPA, gave you 30 days to get in contact with them to get any kind of validation letter, and any further information that you needed for your records. You missed that deadline due to your lack of responsibility. Now I verified your address to be the same, so the letters came to you. What you did with them is on you at this point. Now you have expressed that you are not refusing to pay this, but what you are doing is trying to stall, and unfortunatly sir, you dont have that luxury available to you at time. So this is what I am advising you that our company is prepared to do. I willnot be contacting you in reference any further payments with you. Your recorded statement and your case will be forward to our attorney's representing this client and they will see you in court. Our company is registered with the BBB and our website is www.HoffmanSwartz.com. I wish you the best of luck getting yourself out of this pickle that you are in. If you wish to resolve this amicably sir, you have until 3p today to contact my office, you have the number, if not here it is (678) 466-6464. Do not reply to this email, because it will not be considered your answer to resolving this issue at hand.
Good Luck!!
Question, am I okay legally or is this a scare tactic? Also, looked up the website and is this a Law Firm or a collection company??
Dre Day