Legal Question in Credit and Debt Law in California

Generally, no. The United States does not have a debtor's prisons and you cannot generally go to jail because of an unpaid debt. Your payday loan debt is not the type of debt someone could face prison time for and if their collection agency is telling you could go to jail, they are violating federal and state faird debt collection practices acts. You can sue them for damages. I suggest you contact an attorney in your area that practices bankruptcy and consumer debt collections.