I got a call from them a few days ago. They said I owe $1800 for a $300 online payday loan I took out in 2011. they say if I don't pay my file will be submitted for criminal processing for intent to defraud because I took out a loan without intention of paying it back. I do have record on my bank statement of a payment I made to M Callahan and associates (an online payday loan debt collector which has been shut down) in 2012 of the principal for this same payday loan but they said it's not valid because I don't have any email proof of recept.  

You need to read up on your rights in this matter here:  http://www.consumerfinance.gov/

You will find that these criminals are required by Federal law to do certain things.  They are required to prove to you that the debt is valid, and this has to be done by US Mail, not e mail, or fax, or even smoke signals.  They are not allowed to threaten criminal prosecution for a civil debt because it simply does not exist.  This is a common attempt to extort money from people because most people do not know the law or their rights.  You have just been given the chance to educate yourself, please do so.  Also file a complaint about this company on that web site as well as with your State Attorney General's Office.

Do not pay them a dime in the mean time until they validate the debt.  Insist they give you a physical address so that you can send them a debt validation letter.  I can pretty much guarantee they will not since they know they are breaking the law and will not want you to have their location.

Did anything come from this?

I have been dealing with these guys for the last two weeks and they finally sent a "validation email" but said they can not send it via mail because that is what the original lender "supposedly" did for the past four and a half years. I contacted the FTC and local FBI but they couldn't verify whether these guys are scammers.  Looking for some insight. Thanks

No such company exists.  Just use your googlefu.  Obvious thieves.