Legal Question in Credit and Debt Law in North Carolina

You may have a moral duty but not a legal one. If this loan was incurred while you were in NC, then the statute of limitations here for most things is 3 years. That 3 years would begin to run from the date of last payment or when the payment would have been due but which you did not make. Stated another way, the statute begins to run when the right to sue first arose. So even if this was a legitimate debt, the statute has probably expired.

Is this really a payday lender? Pay day loans are now illegal in NC. If its an online lender they are not supposed to loan to people in states where it is outlawed, but many lenders, especially online overseas lenders still do. They charge outrageous interest but they do not intend to sue in states like NC where its illegal. if you don't pay, there are plenty of dummies who do so its just a cost of doing business.

If you took the money in good faith, you probably have a moral duty to repay it. I would try to negotiate (but get the terms of a deal in writing before you pay them a dime). You can offer to repay the sum borrowed only given that the statute of limitations has expired and that payday loans are illegal in NC.

Tell them its a take it or leave it offer. If they give you crap and will not accept it or send you a written agreement, then its probably an online lender located overseas and you pay them nothing. In such case, get as much information as you can and see if the NC attorney general's office will assist.

Know that these people are long on harassing conduct (they don't obey the law) and make empty idle threats. They will not sue, they will not bring criminal charges or put you in jail.

Don't believe their nonsense. Real lawyers don't handle cases in this fashion.