It isn't fraud just because you stopped paying. If you don't pay them, they can sue you and get a judgment. If you don't have anything that the law allows them to take to pay the judgment, then they have up to 10 years to wait for you to get some assets that they can take to satisfy their judgment. If they can't collect on their judgment in 10 years, then they are out of luck, and the judgment can't be renewed. They also can't garnish your wages in SC for a consumer loan. If they threatened you with jail for not paying or with other actions that they can't legally take, then it is possible that they have violated both the FDCPA and the SC Consumer Protection Code, which applies both to original creditors and collection agents. If you wish to see if you have any actions that can be taken against the creditor in this matter, then you should consult a consumer protection attorney. You can find a list of such attorneys at the link below.
You can't go to jail for not paying a debt, but you can get sued to collect and "can't afford to pay" isn't a legal defense to a lawsuit. Fraud would be an issue if you obtained the money by making a false representation, such as the amount of your income. Hope this perspective helps!