Legal Question in Credit and Debt Law in Pennsylvania

You are not going to get arrested.

Here is a link to a brief article I wrote 2 years ago:

http://www.rachelhunterlaw.com/articles/article_9_Pay_DAY_Lending.html

Read the section on PA Law. Payday lending is legal in PA provided that the lender is registered to do business with the state. If they are not registered, then they are limited to charging you 6% interest. Most lenders do not find it profitable to do either so they violate the law.

Contact the PA banking department and find out of this lender is or was licensed (my guess is no). You probably have already paid back the loan plus 6% interest, not the excessive interest they are charging so I would not be worrying. If not, you only have to pay back what you borrowed plus 6% interest and no more..

I would close your bank account first thing on Monday if the lender or collector still has access to your account.

Unlikely that you would be sued. If the lender violated the law, they would be exposing themselves to criminal prosecution if they sued you. And you could countersue to go after any overpayments, and attorney fees for their conduct.

As long as this is not on your credit, I would not be overly concerned. If the collector harasses you, get a physical address (not a post office box) and send them a cease and desist letter. Contact the PA attorney general if you have any problems.