Of course you should not pay this. You already have been told by reliable authorities that this company does not exist. You are the victim of a PayDay loan scam.
You can check your credit report and see if you owe these loans. The Federal Government will give you access to your credit report for free by going to annualcreditreport.com. This is the only website the US government approves for this purpose.
You can see your reports from all three credit reporting bureaus there. And you will know for sure whether you took out this loan. If you're sure you don't owe any money, however, I'm betting that you are correct.
Unscrupulous people buy up old debts and lists and then call people and bully them into thinking they owe money that they don't. In this way they scam people out of their money. These tactics, however, are entirely illegal, and you don't have to put up with this at all.
You have rights under the Fair Debt Collection Practices Act. You can ask them when next they call for a validation letter in writing and dispute the debt. This is what you've already been told. You're entitled to do that under the FDCPA.
Once you formally dispute the debt, which you should do in writing, they MUST leave you alone. If they don't you could report these folks to the Federal Trade Commission as they are violating the Fair Debt Collection Practices Act and can be fined $1,000 for each time they illegally harass you.
If they are scammers and not even real collection agencies, they are probably not going to be intimidated. However, once you tell them that you're disputing the debt, you can safely ignore them.
In the worst case scenario, if they are real and truly believe you owe these monies, they would have to take you to court and you could prove there that the debt has been settled. But I don't think it will come to that.
The Federal Trade Commission gives a wonderful overview of overaggressive and/or fake collection agencies and how to get them off of your back, where to report them, where to learn more, etc.You can access that here:
So, you should not pay anything and you are likely going to wait forever for the so-called paperwork. These folks are not going to take you to court.
If you gave them any sensitive personal bank or credit card account information then, yes, you want to take precautions against identity theft by closing those accounts and opening up new ones. Under those situations, you may also want to put a fraud alert against your credit history.
You do that by notifying any one of the three credit reporting services, Equifax, Experian or TransUnion (any one of them will automatically notify the other two) and asking for one.
A fraud alert is free for 90 days, and it means that if, during that time, anyone attempts to open up a credit card or take out a loan in your name, you will get a phone call before any such loan or credit line gets authorized. After 90 days, you can continue the service for a fee.
A fraud alert will not affect your credit negatively. It is only to protect you, and it won't change the way you can use your credit cards or bank accounts. It just alerts new lenders not to approve new lines of credit without contacting you first.
I'm linking you to Experian, because I have the link handy. Again, they all perform the same service and any one will notify the other two.
You'll also get a copy of your credit history from each of the 3 reporting agencies when you apply for the fraud alert, so that you can see if there are any accounts or loans you know nothing about that someone opened under your name.