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Hi and welcome to JA. I am Ray and will be the expert helping you today.
They cannot arrest you here for a civil debt.They are misleading you trying to get you to pay here.If they get a judgment on you they can garnish bank accounts so you may want to keep as low a balance as you can.But they cannot arrest you are are violating federal law by threatening you with such arrest.
You can sue them here is small claims if they do not refund your money.
Here is self help and forms to sue them in small claims..
You can sue here if they have not reimbursed you for this overpayment.You can get judgement that includes your filing fees here as well.
It appears you have good facts to pursue this in small claims if you have too.
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again..
Forms and step by step..
I am so sorry they did this to you.You have remedies here in small claims.
Reference to the fact they cannot arrest you here..
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