What to do if my son-in-law is being threatened with arrest for fraud for a past due loan?

Question Details: About 6 years ago, he took out a quick loan for $300 for his sister, who was supposed to pay it back and he didn't know that she didn't. Someone, supposedly a lawyer, called them 2 days ago and said that 3 collection agencies have tried for 6 years to contact them for the money. However, they've lived in the same place for 4 of those years. The lawyer told them they could pay $140 of the $1400 that is now due to keep him from being arrested, which they did that day. Then they're supposed to pay $200 something a month to pay it off. How can they know if this is for real? If they owe the $300, then fine, but ut $1400?

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