Cash Jar help

I've been following your forum and have asked for help and have followed advice about cancelling checking account and sending cease letters. I haven't heard from Cash Jar in about 3wks since i sent my revoke letter and have spoken with them that i have paid over my initial loan. Today i have received this email. I live in NJ and from what i've seen on this forum and the state laws, Cash Jar is illegal in my state. So if they comment that i have paid $525 on a $500 loan, can they ask me to send $100 more and will waive the add'l $715? Are they just trying to get what little money they can. Obviously they are claiming i owe $815 but will settle on $100, doesn't seem right. Just looking to see how i should handle them. Any advice would be very helpful. Thanks in advance.

"We are sorry to hear that you are unhappy with your experience with Cash Jar. In your previous communication you indicated that you have paid back a total of $525 on a $500 loan. This is equivalent to 5% over the amount you borrowed. We are not in a position to accept 5% interest on a $500 loan. However, in the interest of customer service, and for no other reason, Cash Jar is willing to accept one more payment of $100 to settle your account in full. This would be the equivalent of 25% interest on your $500 loan. Once payment of $100 is received, Cash Jar will waive the remaining $715 of your debt and consider your account paid in full. Accepting this offer will not affect your credit.



This payment can be made free of charge by calling our recoveries department at 866-568-2213. You may use a debit, credit, or pre-paid Visa card.



Cash Jar must receive your payment no later than 6:00 pm Eastern time on Friday 11/19/10.



Please contact the recoveries department no later than close of business on 11/11/10 (8:00 pm Eastern) to indicate your acceptance or refusal of this offer. You may make payment at any time prior to the deadline. Our office is open until 8:00 pm Eastern time today. If we do not hear from you Cash Jar will assume you have refused this offer and further action could be taken against you for non-payment of your debt."



Sincerely

Tina Shedd

Cash Jar Recoveries Department

866-568-2213