No, you cannot be arrested for defaulting on a payday loan.
Actually, if the company contacting you regarding this debt is a collection agency, and the company threatens you with jail, you may have a lawsuit against the agency for violating the Fair Debt Collections Practices Act. You should contact a local consumer rights attorney to determine your rights, and how to proceed.
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.
Answered on Aug 09th, 2012 at 1:27 PM