They are merely a collection agency (even though they claim they are not). Some of them even go so far as to call themselves 'Firms' to sound like theyre an actual law firm. They collect on outstanding payday loans. I briefly worked for one of these type companies. They use numerous scare tactics in order to get you to pay up. The bend the law as much as possible without breaking it (although the more shady ones will break the law completely).

Some example of things they will say are:  'there's charges pending against you' or 'there's a complaint filed against you', etc, etc.   My favorite is when the person calling claims that they are a 'Process Server' trying to serve you with 'court papers' or  'documents' out to you at your home or where you work'.

Think about it for a minute, since when do actual Process Servers call you up on the phone to give you a heads up about being served?
I've had 3 different collection agencies call me in a span of 2 weeks about a payday loan I never took out.  I'm at the point now that every time they call instead of getting angry I have some fun with them and call their bluff..Its funny to watch them get irritated when they realize theyre not fooling me one bit. They end up getting frustrated and hanging up on me.

If youre still worried about being taken to 'court'. Go online to your county's Clerk of Court and do a record search of your name to see if there is any pending action on you concerning this. 99.99 % of the time you will not find anything.