Paydayone.com Help please

Also I live in Tennessee

Well, a collection agency can not charge interest, under Section 808 Unfair Practices of the Fair Debt Collection Practices Act under the Consumer Credit Protection Act, federal law prohibits a debt collector from collecting any amount (including any interest, fees, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

If a debt collection agency owns your account, and you did not expressly enter an agreement to pay interest and fees to that collection agency, than they cannot charge you anymore than what the already existing balance is.

Now, you are dealing with a collection agency so forget about the original lender. They can not prosecute you for a bad check, I would assume since Paydayone is an Internet lender they were debiting money from your account, so if they (LRA ) threatened you with bad check charges they are just blowing smoke.
Here is how you should handle a collection agency.
- If you receive a call from a collection agency, DO NOT admit to owing the debt over the phone, as far as you are concerned it's only a voice over the phone and should be treated as such until you are certain (documentation) they are legitimate and following the law!
-You are protected by the FDCPA (Fair Debt Collection Practices Act), these laws are designed to protect you from scams, therefore you should exercise your rights.
-Ask the voice on the phone; their name, the full name of the business (ask them to spell it), their address, and a direct telephone where THEY can be reached, next, proceed below.
-Tell the alleged debt collector they have 5 days to send you a dunning letter (also known as a letter of collection) through the mail, tell them you are counting the days and keeping a record of all communication to make sure they are complying with the federal law (FDCPA).
-If the debt collector refuses to give you any information that is a BIG RED FLAG. Do not give them any of your personal information, do not admit to owing any debt, and do not discuss anything over the phone. File a complaint immediately with your state attorney general and the FTC.
-If and when you receive a letter of collection, you will send them a debt validation letter, certified, return receipt requested, it is extremely important that you send the debt validation request certified.
-Educate yourself on the FDCPA.

Thank you very much for the information!!!

You're quite welcome. Please keep us updated, if you have any further questions feel free to post them here!

LRA is Lighthouse Recovery Associates, 11551 East Arapahoe Road, Suite 150, Centennial, CO 80112. Complaints about their collection activities should be filed with the Colorado regulator:
STATE OF COLORADO
COLLECTION AGENCY BOARD
COLORADO UNIFORM CONSUMER CREDIT CODE
COLORADO ATTORNEY GENERAL
FIFTH FLOOR
1525 SHERMAN ST
DENVER CO 80203