Can a payday loan company ask for repayments if the account has been closed?

I stupidly took out a payday loan and let the interest mount up... a few months ago I payed this loan off in full and asked them to close the account and to take me off the mailing list they sent me and email to say they had done so. The other day I received an email from them saying they had been refused payment and that this will reduce my credit rating if not resolved ... what should I do?

That might be an error in an automated mailing system. If you paid the loan off on time, they can't give you a bad credit rating. Keep copies of those emails until you are sure this is over.

If they do in fact, change your credit rating, you have the legal right to put your side of the story in your credit files and they have to report your side when they report what the loan company says.

I agree with the above comments, for more professional advices ask your lawyers or else to the financial consultant for a better way to do.