Yes, the can and will sue you over the debt. You either can negotiate with each creditor on a payment plan that both of you can accept (I suspect they will demand something you cannot afford) or you can file for bankruptcy.
Please speak with a consumer law or bankruptcy attorney about options and your rights. Also, if a debt collector contracts you and makes various threats (the standard being that you will go to prison if you don't pay), you have various legal rights. If you cannot afford an attorney see if you qualify for legal aid. Good luck.
This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.
Sorry to hear you've been caught in the debt trap that is "payday loan hell". But, I urge you to ignore the advice given by the out of state lawyer below; it is highly unlikely you will be sued and bankruptcy is an extreme option based on what you posted.
While you technically can be sued, you will probably not be sued on any of these loans in Pennsylvania. If you do get sued, you will likely have a counterclaim under Pennsylvania's usury and consumer protection laws for exorbitant interest rates. The Pennsylvania Supreme Court has ruled that PA's interest rate cap of 6% for unlicensed lenders applies to loans made over the Internet to Pennsylvania borrowers. (I’ll bet you a nickel your APR is at least 10x that). The internet payday lenders know this and probably would not sue you here; nevertheless, they continue to make these illegal loans to PA residents. If they do sue you, call me or another consumer protection lawyer; you can find one here: www.naca.net.
(I add that PA's republican legislature, heavily lobbied by the payday loan industry, is trying to make these 300% + interest rates legal. Visit this site for more info on internet payday loans in PA and the industry's fight to make their obscene interest rates legal here: http://www.stoppaydayloanspa.com/. )
That said, the lender can still try to collect the debt from you through the mail and over the phone. Unfortunately, their collectors are vicious and totally disregard federal and state fair debt collection laws. Hollow threats of suit are their calling card. They get away with this because they are hard to track down and sue as they are located in another country, on an Indian reservation or some deserted island.
I commend you for paying the principal amount and intending to pay them; but these bloodsuckers won’t stop, it was probably a smart move to stop the ACH transfers. Contact the PA Attorney General's office and their Bureau of Consumer Protection to lodge complaints about their tactics. Good luck.
The above is for informational purposes only and does not establish an attorney-client relationship.
I agree with Mr. Milz. You are dealing with the lowest form of lender. Payday loans are essentially illegal in Pennsylvania, and these creditors will have tremendous difficulty trying to collect in this state. Just to explore all of your options, it may be worthwhile for you to consult with a local attorney who handles debt matters and bankruptcy.
Be prepared for some aggressive collection tactics. It is not uncommon for payday lenders to impersonate attorneys, threaten debtors with criminal prosecution, and worse. Such threats are nonsense and violate the Fair Debt Collection Practices Act and the Pennsylvania Fair Credit Extension Uniformity Act.
To reach me call 215-248-0989. Harborstone Law Group serves Philadelphia, Montgomery, Delaware, and Bucks Counties in Pennsylvania. Answers to any question on this forum are for general information purposes only and do not constitute legal advice or establish an attorney-client relationship between Harborstone Law Group or its attorneys and you. This type of forum cannot substitute for a consultation with an attorney.
I am a local attorney (butler county) who practices in the area of bankruptcy. As others have noted, the interest rates that you are being charged are likely over the PA limits, so they probably will try to intimidate you by threatening legal action. However, the chances of them successfully winning an action against you could be slim. To specifically answer your question, technically they CAN sue you. Anybody CAN sue anybody. A lot of times these companies initiate a lawsuit with the hope that you won't respond or put up a defense and they will win by default. So, you should always watch your mail and don't be afraid to get certified mail because you would need to be aware of any court filings. I am a bankruptcy attorney, and I don't know if that would be right for you. I have to take into account your income, assets, your ability to repay, etc..., however if it was in your best interest to pursue protection under the bankruptcy code, these unsecured debts would be completely dischargeable.
I invite you to use the links available on this page to locate my avvo.com profile and CONTACT ME AT MY OFFICE at 724-406-0616 for a personal consultation, because the information provided in the above answer is not legal advice, nor is it intended to be legal advice. It is general information that is incomplete and may not specifically apply to your particular circumstances, so you should not act upon it until discussing your situation with an attorney. My website is www.nashlawoffice.net