Please somebody help.

Hello, i really need some advice on how to deal with this payday loan. I live in New york, and about a month ago i was browsing payday loans b/c i was in between jobs. I never went through with it and never confirmed or e-signed anything. But a week later HYDRA fund 1 had deposted 250.00 into my account. Thinking it was a refund check from school i used the money. Then after a week it started to drain my bank account and therefore i closed my account. Then i started getting the calls from some lady saying i need to repay the loan and will settle for 230.00. She was saying she would contact my HR manager at work and would start to garnish wages if not paid off within the next two weeks. She stated she would see if the lender would give me more time to pay considering i didnt have the money at the time and that she would email me the bill or whatever. Never got that and about a week later a man called me with a thick indian accent which i could barely understand said there was a lawsuit against me and I owed about 7,000 dollars now and supposedly read an affidavit or w/e saying i had charges of check fraud and others things and i would have a warrant out for my arrest and sent to jail. I havent paid the principle amount which im willing to do on my terms tho, but i have no idea who to call or where to pay the money. Im really nervous guys.. my main questions are..

Can I really be sued by these people?
How can i owe over 7,000 on a 250.00 loan only about a month ago?
How do i contact hydra fund to pay principle amount?
Overall, what are the steps i should take to end this mess?