Anyone can sue anyone for practically anything. However, based upon the fact that you were paying the loan at a point and could no longer do so, would be a defense to any fraud action as you had not intent to deceive at the time you took out the loan.
The fact that they are threatening is problematic for them. Depending upon who is making the calls, they may be violating the Fair Debt Collection Practices Act (FDCPA). They may also be violating various other laws including fraud, invasion of privacy or intrusion into seclusion.
Of course there may be other remedies regarding the payday loan companies depending upon if they sue you. Generally, rather almost exclusively they have binding arbitration clauses which are evil and limit your right to go to court. However, there are still certain ways to get around them, albeit very limited. Having said that, I am pursuing one payday loan company in arbitration and have two other law suits (soon to be three) going right now in court although one now seeks to compel arbitration as well.
It is hard to say what exact remedies there are based upon your brief fact set without examining the documents and notes related to the calls etc.
I do not practice in South Carolina you may wish to find a Consumer Protection Attorney in your area by looking on www.NACA.net or please feel free to get in touch with me and I will point you in the right direction at:
Ronald Frederick and Assoc. Co., L.P.A.
1370 Ontario St., Suite 1240
Cleveland, OH 44113
216 502-1055
[email protected]