HonBeth, Google "fdcpa", stands for Fair Debt Collection & Practice Act. Read it through. If Arrowhead Investments is claiming to get you arrested and also call your family, then they are in violation of your rights through the FDCPA. Regarding threatening arrest, the act states under U.S. Code Collection, Title 15>Chapter41>Subchapter V>section 1692e. False or misleading representations: A debt collector may not use any false, deceptive, or misleading representation..with the collection of any debt...(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney...(4) The representation of implication that nonpayment of any debt will result in the arrest or imprisonment of any person...unless such action is lawful and the debt collector or creditor intends to take such action....(5) The threat to take any action that cannot legally be taken or that is not intended to be taken...(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer. ----the list goes on and on, HonBeth!
The collection agency cannot arrest you for nonpayment of your debt. The collection agency will not subpoena you to court for this small dollar amount. You do have rights. You should seriously consider making complaints to the Better Business Bureau, the FTC (Fair Trade Commission) and your state's AG (Attorney General) office. Your state has a legal limit to fees and interest rates for payday loans, and the amount they are telling you that you MUST pay is illegal in your state, I'm quite sure! My state (Ohio), for instance, does not allow loan rollovers. My state's max apr is 25%. My state's allowable payday loan fees are $5 per every $50 borrowed.
Do major research, and you will become the victor!