I also reside in CA and got myself into a horrible payday loan cycle about 2 years ago.
I think you may want to try to work directly with the lenders yourself and not too quickly if you'd like to get a better settlement.
I too had contacted several entities who said that they could help me consolidate my payday loans and get out from that hell. Although they made it sound good, if you calculate the payment they are asking you to make, they are taking an extremely hefty profit from your misery.
I closed the bank accounts that each lender were debiting and I did take the advice on this forum and spoke directly to the branch managers and was honest about my situation to ensure that I got a hard close on my accounts.
For the first two months or so, the lenders were awful! They called me both on my cell and work telephone and emailed me. I faxed and mailed letters asking that they cease contacting me at work and they did.
After about 4 months went by, nearly every lender (and there were a bunch!) offered me incredible savings. I even had one offer to settle for like $50 or something when I owed $300.
It has now been nearly 2 years since the loans became delinquent. I just filed for bankruptcy last week since I had a lot of other unresolved debt too. But, it seemed that most of the lenders were anxious to get something rather than nothing after a couple of months had rolled by. I realize that the statute of limitations had not elapsed but not one of them had filed against me.
I've read on other posts that in-store payday loans have more chance of suing you since they are inside of the state and not just licensed to do business in the state.
Best of luck to you. I know, firsthand, the pain and sleepless nights that the payday loan cycle can bring!
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