Payday loan problems

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Question

Country: United States of America
State: New York

I stupidly got involved with a payday loan company back in March 2003 or around then. I was allowing the company to take payments directly from my bank account until I was given counterfeit money order forcing the bank to close my account. I notified the loan company of my situation and asked if could make payments by money order but never received an answer, the last contact I had with them was in Sept. 2005. I got a call from a person claiming to represent the loan company saying that they want to have an arrest warrant put out for me for not paying them back and something about bad checks because the bank would not let them into my account. What, if anything can I do to help myself? I tried to make payment arrangements with this company and they refused citing that I did not keep up the agreement that I originally had. I can get an allotment from my job to pay off the loan or should I wait to see what is going to happen?

Answer

They cannot arrest you--they need to sue you, and often they will not do so-
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