Payday loan chaos!

A payday collector called my boss today and stated that I defaulted on $300 and if I didn't want to go to jail. I needed to pay $2300 today itself. Is this reasonable to pay such an amoumt when the default amount is just $300. Also, they called my employer that they were going to sue them as well. Can they do so when mu boss has nothing to do with my loan?
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