Legal Question in Banking Law in Oregon

Re: Internet loan

I don't know what you mean by an "internet loan" and what the terms and conditions of the loan are. Knowing this is the first step.

Having said that, typically you can arrange a repayment schedule with a creditor after they're convinced that harassing you will not make you send them a check for the full amount plus interest.

They can file suit against you, but typically the basis of that will be breach of contract and action on account.

If you think you've done something "bad" you can always get a lawyer to represent you. But most likely it is a collection tactic and all they want is some money. Could be that they are violating the FDCPA if they're threating legal action that they can't take. But good luck finding them if you want to sue them for unlawful debt practices... I doubt that they are a "bank" (maybe a hard money lender?).