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Welcome finance loan collectors

I have recieved a letter and telephone call from a debt collection agency regarding a loan from Welcome Finance. They are saying I owe £3500. I tried to explain to this company that the loan was settled over 3 and a half years ago, I had a loan settled letter but over a recent move I cannot find this letter.
I had trouble with them two years ago, after I was told that a 2nd loan was taken out in my name, when I asked for proof of this ( As I had only taken one loan out and paid it) they would not supply, I have asked this company to prove that I owe this money and that I will only correspond in writing, to which I was told they will send around a collector to my house. I was then told that they had bought the debt from Welcome finance! and that they will phone me 3 times a day to get satisfaction.

I know my legal rights to this matter and I am not worried about idle threats as I know my debt is cleared, I have current credit references that do not show anything nor do I have an CCJ`s or bad credit. How do I stop these people from going any further without taking legal action, and what happens if I cannot find my debt satisfied letter? Am I liable?
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