can they really arrest you???

My mother, had some really bad problems in the past. It was only her and I paying to rent and bills, my brother and his pregnant gf were living with us had no where to go and not working and we had no help. She took out pay day loans (a few of them) from the internet. Since then her account has been closed and she is getting calls threatening to put her in jail and they say that because her account is closed that is a felony charge. Now she is going to have to go to court for this and I am extremely afraid I don't know what to do. Can they really put her in jail? I have read other posts on here explaining California's laws and that there is a limit on how much they can lend and that is $300 one of these loans in particular was for $700.00 so I would think that they are at fault for not only allowing her to have more than one outstanding loan but lending her more than the limited amount allowed by state law?

but, does that law not apply to internet companies? I would think no matter what everyone has to obey the laws no matter what kind of business they're running correct?