First Management Group review: Debt Collectors 13

We just received this phone call this morning, and the exact same thing (phone call, civil complaint, papers served, threatening, offer to settle) The only thing is that we are in the process of buying a house. We are just barely making the credit score cut off. We are terrified that this is going to kill the whole deal if it does report. Did they end up coming after anyone again?

So here is my story. I get a restricted call from some company, on the 20th of December, claiming they have been trying to serve me papers for a debt collection for a while. I asked them what it was about and they directed me to the number [protected], and gave me case number 118812. When I called that number, I was informed that the business was Consumer First Management Inc. (CFM). I was then transferred to a so-called associate named Thomas. He explained to me that I had an outstanding debt with Credit One bank, which I do remember, from 2009. Only problem is I have not heard anything about it in over 5 years. I also checked my credit report and saw nothing relating to credit one bank. During that phone call, Thomas informed me of the amount I had to pay before the end of the year, around $2100. There was no way I could do that, so Thomas agreed to settle on the principle balance of the account, $700, which honestly happened without much of a fight on my part. Well, not thinking quick enough like I should have, I agreed to electronically sign an agreement stating that I would pay the $700 on December 21st, and gave him my debit card information. After getting home from work, I decided to do some research on this company and, after looking up thier information, I notice numerous reports on this company and the associated phone number being a common scam in many reports and complaints. Because of this information I have found, I immediately call and cancel my debit card and inform my bank to watch for anything suspicious just in case. On the 21st, the day I am supposed to make the payment, I call CFM to talk with Thomas again in order to request a validation letter, as is my right from what I understand. After making the call, I decide to ask to talk to the person whose name was on the e-mail sent to me for the electronic signing. This person was Dan Durbin, who claimed he was the corporate manager. Being as polite as I could, I calmly asked him to supply me with a validation letter. Dan told me some being long number of a law that says he doesn't have to do that, and immediately got very rude and angry at me. I, still being as calm as possible, keep telling him that I am fully willing to comply if I receive the validation letter. Dan then goes to tell me that he is canceling the settlement agreement we had of $700 and will be pursuing the full amount of $2100 and still being insanely rude to me. He then tells me they will be in contact later and rudely tells me to have a nice day and hangs up. Could this be legitimate? Yes it is possible but I highly doubt it. This company was very convincing and had a lot of information about me. I really wish I had thought about it before giving out my information, but I did learn not to do it again... ever. It remains to be seen whether Dan is going to follow through with his threat, but I will update if anything changes.