Threaten by a collection co. Working for VIP Cash

I was call today by a collection agency working for VIP cash and the rep stated that I have a case against me from VIP cash and that if I did not pay by 3:00pm 12/23/09 they when send the paper work to my county which is Lake County Indiana. He stated I did not have to appear for court and that they can arrest me and they could come to my job or home to pick me up. But if I had a credit card or borrow the money then they will not press charges. He also stated that VIP cash had stated in there records that they have made several with me via mail and email but I have never recieved any also when I was trying to contact them I would always get a recording. Can this happen? Can I be arrested. He also stated that I have to pay 1280.00 when I only borrowed 500.00 and paid the interest fee of 150.00 every 2 weeks so in all fairness I have paid more in interest fee than what I borrowed. Someone please help me.

Okay, Indiana laws have specified that criminal actions are prohibited against defaulted pdl borrowers. Check state laws here.

Is VIP Cash a storefront lender or online?

You may check with the county court site to confirm if there is indeed a lawsuit pending against you or not.

what state are you in? i am pretty sure VIP is an internet only lender, i have dealt with them and they are illegal in my state.

You can't be arrested and I highly doubt there is any case pending from this company. They are notorious for making empty threats of this nature. CLICK HERE to find out how to deal with illegal lenders, I don't know what state you are in but the threats this lender is making against you is similar to the ones other illegal lenders are making and have been making against other people.

agreed - though they did bow to my letters eventually (as illegal lenders usually do when they realize that you know they are in the wrong).