About 1 year ago I received a payday loan online; they are calling threatening me with jail and being picked up at work can this happen?

You need to speak with a local consumer rights attorney.  There are various federal, local, and state consumer protection statutes that may protect your rights and a local consumer rights attorney will be able to determine which laws apply.  Collections agency are prohibited from making empty threats by the FDCPA.  However, the FDCPA only applies to collections agencies, and it is unclear from your question who is making threats. Additionally, there may be some violations of consumer protection statutes designed to protect your interest.  A consumer rights attorney will be familiar with the law and can determine if there is any recourse for you. Most consumer rights attorneys offer free initial consultations to determine what options are available. This is not intended to be legal advice, and is general in its nature. No attorney-client relationship exists or is formed by this information. Furthermore, this does not represent the views or opinions of LexisNexis or its affiliated companies.