on line pay day loan

I live in Michigan. I had a payday loan with fast cash advance and thought that it was pai d by my bank. which i thought was one of the reasons my account went into a negative balance. the checking account stayed in a negative balance for to long. Today I had a person calling me telling me that they had papers that they need to serve me with that I was being sued and have charges against me. Gave me a file # and a mediation firm number to call. I called them and they said I am being sued and charged with bad check, breach of contract and fraudlent charges of intent to fraud a bank. I have to pay them $75 now and posted in 3 to 5 business days, paying with a credit card/debit card/ checking account/savings account. which i have none. He advised me to go get a prepaid credit card than. There is no option of mailing a money order to them. and than I have to pay $100 a month which is being consirded a hardship agreement. which I explained to them that i dont even get paid till the 30th and cant do anything till than. and i dont think i can do 100 a month. I get paid 200 to 250 every two weeks and have to pay 140 rent out of that and have to pay other bills with it. He replied that was the best arragnment that he could get me because of it being so old. I took loan out in 2010 and Jan of 2011 was the last i heard anything from them. I never recieved any papers that I even owed them money or a phone call or email or anything. Nothing till today. Anyone have any advise on what i should do. I am not denying that i owe the money. I called the bank that closed my account and they did verify that they were never paid. so i owe the money. but cant pay anything till the 30th and want it set up at terms that i can be able to afford to pay.

Please Help