I took out a $1600 loan from Plain Green Loans early this year I paid back about $250 of this amount on my own before I couldn't pay anymore because I lost my job. I got a job recently and was going to resume payment but then found out through this forum and elsewhere that PGL is illegal in my state of Pennsylvania and I have no legal obligation to repay them. So I haven't paid anything else since.
I got a phone call today from National Credit Adjusters saying that they purchased my account from PGL and that I owe them 2400 dollars. I told the guy that PGL is not licensed in the state of Pennsylvania and the debt is not valid and he can't collect anything. He said he would sue me for the amount if I did not pay. I hung up.
What should I do from here? While I realize I may have a moral obligation to pay the rest of the 1600 back, it's still not a good time for me right now. Legally, I believe I don't owe anything at all.
Should I send a debt validation letter to NCA? Or a cease and desist letter? Can NCA come after me legally or put something on my credit report for a loan that is not legal?
Any advice would be appreciated. Thank you.