I recd this from loan mart, pls. Advise

November 13,2006
Dear Borrower:
A former Nevada loan customer recently notified us that he had been overcharged. He informed us that, among other things, we incorrectly used his income to compute the maximum deferred deposit loan Nevada law allows to be made to him. This error enabled him to qualify for a larger loan than he should have received, and he accepted the loan and paid interest on the full amount of the loan.
We acknowledged the error and offered the customer that we would investigate and make a refund. However, before we could complete our investigation and make the refund the customer’s attorney brought a class action lawsuit against us. The lawsuit seeks a variety of damages which are available under Nevada law for willful violations, including statutory and punitive damages and attorneys’ fees, as well as refunds of loan principal.

We believe that our error was unintentional and minor. Most of our customers are unaffected by this error. Because our relationships with our customers are more important to us than anything else, we are refunding immediately the amount we collected in excess of the lawful amount, even though the lawsuit is unresolved. (If you owe us more money on a defaulted loan than the amount of the refund, no refund check is enclosed, but we are crediting the refund amount to your account).

We believe that the refunds we are making represent the full extent of our obligation and that we do not owe any additional sums, whether by way of actual or statutory damages or as refunds of loan principal (as claimed by the plaintiff). We also understand that you may disagree with us and feel you have a valid claim in excess of the refund.

Though we strongly believe that we have done nothing intentionally wrong, we decided that it would be best to put this matter to rest once and for all. Thus, in addition to any refund check enclosed (or a credit to your account, which is yours in any event, we are also offering an additional payment to you to settle any other potential claims that you may have. This will allow you and us to avoid the distractions, uncertainty and expense that accompany lawsuits.
We realize you might not feel that you want to make a claim and do not want to be part of any settlement. However, the current lawsuit brings a claim on your behalf, whether you agree with the plaintiff’s lawyer or not. That means that we must either continue to fight the lawsuit in court or settle with the potential claimants. We feel that the best way to put this matter behind us is to settle with you now. If individual claims are not settled, we may have to resolve every one of them in arbitration or otherwise.
For most borrowers, enclosed with this letter are two checks: (1) a refund check payable to you for the full amount by which you were overcharged; (2) a settlement check made November 13, 2006 payable to you in an amount that we believe is a good-faith compromise of any claim you may have for actual, statutory and punitive damages, as well any claims for refund of loan
principal (this check is in the amount of 50% of your refund check or account credit, with a minimum of $5).

As noted above, some borrowers will only receive a settlement check and no refund check. If that happens, it is because the borrower defaulted on a loan and owes us more than the amount of the refund to which he or she would be entitled. We will credit any such borrower’s account with the refund amount.

You may keep the refund check, if one is enclosed, no matter what. Also, if you choose to settle your claim with us, you may keep the settlement check. You may then cash both checks (or just the settlement check, if no refund check is enclosed). If you are not interested in accepting our settlement offer, please keep and cash any enclosed refund check and return the settlement check to Dollar Financial Group, Inc., 1436 Lancaster Blvd., Berwyn, Pa. 19312, Attention: Colleen Whitlock. We would appreciate you returning the settlement check within the next ten days if you are not going to cash it.

If there is a refund check enclosed, it is marked “REFUND CHECK.” The settlement check is marked “SETTLEMENT CHECK - READ ENDORSEMENT BEFORE CASHJNG.” Do not cash the settlement cheek unless you intend to settle your claims against us n the terms set forth in the release attached.
The amount of the payment(s) offered to you necessarily will be different than the amounts offered to other borrowers. This difference is due to such factors as the amount you borrowed, the length of time for which you owed us money, and the relationship-between your borrowings and your gross and net incomes.

As noted above, any enclosed refund check is yours to keep in any event. And while
we hope that you will accept the settlement offer, whether or not you do so is entirely up to you. THIS IS A COMPLETELY VOLUNTARY PROCESS.
You should read the accompanying release terms, as well as this letter, carefully. We encourage you to consult your own attorney if you wish.

If you have any questions, you may call Colleen Whitlock in our credit department at. (610)640-5942: Thank you for your consideration of this important matter.
Sincerely,
Andrew Callan
Vice President of Domestic
and International Credit

• November 13, 2006

NOTE: IF YOU CASH, DEPOSIT OR OTHERWISE NEGOTIATE THE SETTLEMENT CHECK, YOU WILL BE DEEMED TO HAVE ACCEPTED THE FOLLOWING RELEASE TERMS:

RELEASE
. . .. Monetary Management of California. Inc. dba LOAN MART®, a Delaware corporation (the . Company), and I have entered into this Release to settle any claims I may have with respect to loans to me by the Company after July 1,2005, Except to the extent governed by federal law, this Release shall be governed by the statutes and common law of Nevada. The Company and I agree as follows: .

(a) Special Payment: In exchange for this Release and promises in it, and in compromise of the good faith dispute over overcharges to me and related damages, I have agreed to accept a special payment in the amount of the Settlement Check that accompanies this Release. .
(b) Claims Released: In return for the Settlement Check I have received in connection with this Release, I release the Company, and its parents and affiliated entities, their predecessor and successor entities, and the current and former directors, officers, employees, agents and representatives of all such entities, (collectively, “Released Parties”) from any known or unknown claims that’ presently may have for refunds (including rescission or voidness of my loans), for actual, punitive or statutory damages, for attorneys’ fees, interest and/or costs under the Nevada Deferred Deposit Loan Law, NRS. ch. 604A, or common law from July 1, 2005 to the date I: sign this Release (“Claims’. I. have not filed and will never file any lawsuit or complaint based on ay such Claim. I promise never to seek any damages, remedies, or other relief for myself personally (any right to which I hereby waive) by filing or prosecuting a charge with any administrative agency with respect to the Claims I have released by this Release.
(c) Unknown Claims: I understand that I am releasing Claims that I may not know about, and I understand the significance of doing so. That is my knowing and voluntary intent.
(d) Non admission of Liability: This Release is not an admission of wrong doing by any of the Released Parties.
(e) Consideration of Release: The Company advised me to read this Release and care- fully consider all of its terms before signing it. The Company gave me adequate within which to consider this Release. I waive any right I might have to additional time within which to consider this Release. The Company, in writing, advised me to discuss this Release with my own attorney (at my own expense) during this period if I wished to do so, ‘have carefully read this Release, I fully understand what it means, and I am entering into it voluntarily. I am receiving valuable consideration (the special payment described above) in exchange for my execution of this Release, which payment the Company in good faith contends I would not otherwise be entitled to receive. It is not necessary that the Company sign this Release for it to become binding on both me and the Company.
YOU SHOULD READ THIS RELEASE AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT. IT INCLUDES A RELEASE OF KNOWN AND UNKNOWN CLAIMS FOR LOAN OVERCHARGES AND RELATED DAMAGES. IF YOU WISH, YOU SHOULD CONSULT YOUR ATTORNEY.