Bob's of Milford Car Dealership Unprofessional, lied to us, threatened us Milford, Connecticut

My husband and I purchased a used car from them in September of 2012.  We traded in our car and were told we also needed a $1000 downpayment.  We were told that we could set up a payment plan and have the $1000 deducted out of our account over the next 6 weeks.  The salesperson made a copy of our debit card. 

When we signed our loan papers, there was a downpayment of $1500 listed on our paperwork.  When we asked if that was our trade in we were told yes and assumed that the $1000 we had previously talked about was negated because of what they gave us for our old car.

Bob's never initiated a withdrawal of funds from our account.  2 weeks ago, they call my husband.  Huge problems, they never got their $1000 from us.  My husband tells them they never took it out (mind you this is 2 months later).  My husband explains our thought process and tells them he will call them back, does call them back, leaves a message.  They call today and speak to me (the wife) and I am threatened with an arrest warrant for not paying the $1000. I explain to this person everything written above.  He tells me he needs the $1000 today. I tell him there is no way that I can do that and if that is the case, they can take the car back.  He tells me it's not a question of taking the car back, it's a question of writing bad checks (we never wrote a check) and he will be forced to have a warrant issued for our arrest.  Of course, I am freaking out, call my husband at work. I convince Bob's to set up a new payment plan over the next 4 weeks.  Now that I have had time to think about it, I don't think we legally did anything wrong.  They never attempted to take money out of our account prior to today, not sure if they lost the photocopy of our debit card, and we never wrote out checks to them.  I think they screwed up, someone just noticed it and decided to scare us into giving them money.  At the very least, this place has poor communication skills.