Letter to GW

July 26, 2006



GW Financial Services, LLC
Accounts Receivable
1250 24th St NW Suite 350
Washington DC 20037

Re: ***************s Account SSN#: ###-##-####

Dear Sirs:

Effective immediately, I hereby revoke authorization to GW Financial Services, LLC, or any representative, parent company, affiliate, or subsidiary of GW Financial Services, LLC, to withdraw any funds electronically from my checking account ending in **** at Wachovia. The account has been closed to all further activity, so any attempts to debit this account will be returned “ACCOUNT CLOSED”.

I have become aware that since such time as I have been affiliated with your company, I have paid disproportionate amounts of interest over the course of such affiliation. Upon research of New Jersey State law, I have discovered that GW Financial Services, LLC is not legally authorized to lend to residents in New Jersey. Therefore, GW Financial Services, LLC is in violation of New Jersey usury, interest rate cap, and licensing requirements, i.e., The New Jersey Code of Criminal Justice 2C:21-19: Wrongful credit practices and related offenses, and Title 17 Corporations and Institutions For Finance and Insurance 17:9A-428. For your information, please reference http://www.njleg.state.nj.us/.

2C:21-19 Wrongful credit practices and related offenses.
a. Criminal usury. A person is guilty of criminal usury when not being authorized or permitted by law to do so, he:
(1) Loans or agrees to loan, directly or indirectly, any money or other property at a rate exceeding the maximum rate permitted by law; or
(2) Takes, agrees to take, or receives any money or other property as interest on the loan or on the forbearance of any money or other interest in excess of the maximum rate permitted by law.
For the purposes of this section and notwithstanding any law of this State which permits as a maximum interest rate a rate or rates agreed to by the parties of the transaction, any loan or forbearance with an interest rate which exceeds 30% per annum shall not be a rate authorized or permitted by law, except if the loan or forbearance is made to a corporation, limited liability company or limited liability partnership any rate not in excess of 50% per annum shall be a rate authorized or permitted by law.
Criminal usury is a crime of the second degree if the rate of interest on any loan made to any person exceeds 50% per annum or the equivalent rate for a longer or shorter period. It is a crime of the third degree if the interest rate on any loan made to any person except a corporation, limited liability company or limited liability partnership does not exceed 50% per annum but the amount of the loan or forbearance exceeds $1,000.00. Otherwise, making a loan to any person in violation of subsections a.(1) and a.(2) of this section is a disorderly persons offense.
b. Business of criminal usury. Any person who knowingly engages in the business of making loans or forbearances in violation of subsection a. of this section is guilty of a crime of the second degree and, notwithstanding the provisions of N.J.S. 2C:43-3, shall be subject to a fine of not more than $250,000.00 and any other appropriate disposition authorized by N.J.S. 2C:43-2b.
c. Possession of usurious loan records. A person is guilty of a crime of the third degree when, with knowledge of the nature thereof, he possesses any writing, paper instrument or article used to record criminally usurious transactions prohibited by subsection a. of this section.
Amended 1979, c.178, s.42; 1981, c.104, s.1; 1981, c.290, s.25; 1986, c.184, s.6; 1997, c.426, s.2.
17:1-27 Prohibited actions.
3. No bank, savings bank, State association, or any officer, director, employee, or major shareholder thereof, shall:
a. Fail to comply with an order or other written instruction of the commissioner or any other financial regulatory agency;
b. Violate a State or federal law;
c. Take any action, or fail to take an action, with the result that a material interest of the covered institution is adversely affected;
d. Be convicted of a crime that would permit adverse action by a governmental agency pursuant to P.L.1968, c.282 (C. 2A:168A-1 et seq.);
e. Provide incorrect, misleading, incomplete or untrue material information about the covered institution to the commissioner or any federal financial regulatory agency;
f. Withhold material information from the commissioner or any federal financial regulatory authority about the covered institution; or
g. Take an action, or fail to take an action, the result of which poses a substantial risk to the safety and soundness of the covered institution or may cause substantial damage to its reputation. L.2005,c.195,s.3.
17:1-28 Enforcement of, penalties for violations under C.17:1-27.
4.a. In addition to any other penalty provided by law, if the commissioner determines that a bank, savings bank, State association, or any officer, director, employee or major shareholder thereof, has violated a provision of section 3 of this act, the commissioner may impose any one or more of the following penalties and sanctions as he deems appropriate. The commissioner may:
(1) Impose a civil penalty of up to $10,000 for each violation, or up to $50,000 for each willful violation;
(2) Suspend, revoke or refuse to renew a license issued by the department;
(3) Temporarily remove a person responsible for a violation of this act from working in that person's present capacity or in any capacity related to activities regulated by the department;
(4) Prohibit or bar a person responsible for a violation of this act from working in that person's present capacity or in any capacity related to activities regulated by the department;
(5) Order a person to cease and desist any violation of this act;
(6) Order a person to make restitution for actual damages;
(7) Enter an appropriate temporary order, to be effective immediately and until entry of a final order, pending completion of an investigation or any formal proceeding instituted pursuant to this act, if the commissioner finds that the interests of the public require immediate action to prevent undue harm to the covered institution, depositors or the public. Orders issued pursuant to this paragraph shall be subject to an application to vacate upon two days' notice, and a preliminary hearing on the temporary order shall be held, in any event, within five days after it is issued, in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.); and impose other sanctions or conditions as the commissioner deems appropriate.

GW Financial Services' claim that the contract I signed is solely governed by the law of the District of Columbia, the state in which your company is physically located, is unsupported. There is specific case law which negates this claim. GW Financial Services, LLC consciously solicited, accepted, and transacted business with a citizen of the State of New Jersey and you are therefore subject to the laws of New Jersey – including usury, interest rate caps, and licensing requirements. Since GW Financial Services, LLC is not licensed to lend monies in New Jersey any contract I entered into with your company is unenforceable and automatically void as a matter of law. To that effect, I draw your attention to New Jersey State Rule N.J.A.C. 3:4-4, which completely refutes that claim http://www.state.nj.us/dobi/proposed/pn04_372.pdf which was adopted October 17, 2005 http://www.state.nj.us/dobi/proposed/ad050919bnk.pdf . Excerpts are provided below:

The general law in New Jersey, set forth at N.J.S.A. 17:9A-316, is that foreign banks may not transact business in New Jersey. Under the law, a foreign bank is a bank that is not chartered by the State of New Jersey or which has not properly established an office in New Jersey.

Regarding the comments about payday lending, refund anticipation lending or title lending, the Department has concluded these types of loans violate criminal usury, civil usury and the consumer loan provisions of the Licensed Lenders Act. The purpose of the proposal is to clarify that, with regard to agents of foreign banks, the agent clause in N.J.S.A. 316E may not be used to circumvent New Jersey law.

In reference to my current and past loans with your company, I am formally requesting substantiation of all interest and principal payments made by me to your company. Please also send me a copy of what is presently owed to your company at my home address above via U.S. Postal Service within the next 10 days. According to my records, I received a loan on February 6, 2006 and have paid renewal finance charges in the amount of $708.00 through bi-weekly ACH Debits of $59.00 for 6 months on a loan principal of $400.00 as of February 17, 2006. The amount of interest you have charged me is well in excess of five (5) times New Jersey State mandated interest rate cap for short-term loans [ (et seq.) any loan or forbearance with an interest rate which exceeds 30% per annum shall not be a rate authorized or permitted by law (The New Jersey Code of Criminal Justice 2C:21-1)]. According to New Jersey State law, the remedy for such usurious conduct is the refund of the principal amount on which such interest is charged, as well as all interest charged (excerpt above). Therefore, it appears that your company may actually owe me a refund with regards to this matter.

In view of the information detailed above, I am willing to settle this matter with you and not seek such refund as I am entitled to by law. I expect GW Financial Services, LLC to immediately mark my account PAID IN FULL. Further, at no time will GW Financial Services, LLC, its representative, parent company, subsidiary, or affiliate, place any derogatory mark on my credit report with any credit bureau, nor with any check writing database such as Teletrack or equivalent database.

In the event you decide to effect one, I hereby revoke any wage assignment you may attempt to implement on this account. Furthermore, please accept this as formal revocation of any authorization for you to make any debits from this date forward. The checking account of record, ending in *****, has been closed due to too frequent overdrafts through my Bank and as a result any attempt to debit this account will be returned to you as “ACCOUNT CLOSED”.

Please also be advised that I am in the process of working with a debt consolidation company to settle any amounts due and payable to you. Therefore, any questions you may have should be addressed to them directly at:
T******

Effective immediately, please do not contact me via telephone or facsimile at home, at my place of employment, or at any other phone number of record, as any telephonic communication with me must be made through my debt consolidation company, T******. Otherwise, any written communication may be sent to me at the above mentioned address via U.S. Postal Service, or via email at the email address of record.

I look forward to an amicable resolution of this matter.

Sincerely,