We have just started dealing with LLS the last couple weeks. They are claiming a loan originated in 2008 never was paid and they are now attempting to collect. I have documents that support a payoff. It sounds like a scam to me. I also found a story that LLS has filed for bankruptcy protection and that the owner is alleged to be running a Ponzi Scheme through LLS.
Faith, if they are threatening You over the phone in any way, that is against the laws covering Payday loans in just about every state. I would check the laws in your state just to make sure. Also included in that law is the inability of any payday loan company to take you to court over the debt OR to say that you will be going to prison. Payday loans are unsecured, and therefore those actions cannot be taken.
I had a problem like this several months ago. Someone called and said that I owed them money on a payday loan that I know I paid off. I told them to send me the original loan docs and I would review and get back to them. When the dude on the phone told me they could not send me those docs, I told him that until I receive them I had nothing else to discuss with him, and hung up. Have not heard from him since.