Americash Checkbook loan Help

I am in need of some advice on how to handle my situation with Americash. I took out a loan with them in Sep 07 for $1000...my payments were to be 24 payments of $117. I made all the payments on time (the money was taken out of my checking account) I went back to the store Nov 5 to see if I could increase the loan because I was in need of extra money again. So I was allowed to refiniance the loan for $1800. My payment plan then changed to 24 payments of $229.94. The money was taken out of my account twice a month without a problem (actually when I review my bank statements they take out $230) until 12/31 and 1/15....my account was negative and those two payments did not go through. They then continue on 1/30 to take a payment through and it was succesfully paid. So from Jan 30 to June 16 all payment of $230 were made. I stoped working and the money of June 30th payment was not in my account and it was returned. Since then I have contacted them and made a payment arrangement with a representive to go into a store on June 25 and make a payment.

While I was at work on June 25 my HR department called and down and told me that they had recevied a notice of Wage assignment from them. I couldn't believe that after I had just spoke to them the week before and they never told me that I was at that point yet. My employer told me they were not going to honor this and since I have been in contact with Americash just to see if I can work something out with them. I went into a store a made a payment of $144 (that was all that I could afford). I didn't ask any questions about it when I was at the store.
When I got home I saw they had mailed the same letter to me that my employer had. It is a notice of intent to assign wages and at the bottom there is a Affidavit of Defense. It says that if I was to prevent my wages from being assigned I was fill it out and send it back by registered or certified mail and give a copy to my employer within 20 days.

I am not sure what to do at this point. I guess I will send them the Affidavit of Denfense back. But, the last sentence says...
"In the event a false defense is made, you will be subject to payment of attorneys' fees, court costs and other expenese."

What does that mean...what would make it deemed as false?
I have already made aprox. 12 payments of $230 a total of $2760.00 plus the three payments I made for $117. Which would bring my grand total to aprox. $3111.00 I've paid to Americash for a $1800 loan. Is there anyway I can get out of this??? PLEASE HELP!! :cry: