zip19 response - would not apply interest fees charged in the past

Good morning.

I sent my revocation letter to zip19 and have informed them that since I have paid their high interest illegal fees in the past on my numerous reloans with them, they should consider my last loan as paid in full and close my outstanding loan with them (I calculated my principal loans and interest fees which end up that they actually owe me a refund of over $800 but I didn't bother asking for it back, I just want them to issue me a PIF). Here's their response, please let me know next actions to take or if I should just ignore it:

[LEFT][FONT=Arial][SIZE=2]We are in receipt of your email dated July 12, 2012. Please be advised that we have ceased all collection activities and all communication by telephone while this account is under investigation. [/LEFT]

[LEFT][SIZE=2]If you take a moment to review the attached loan agreement, you will see that Northway Financial Corporation Ltd. is a Financial Institution licensed and regulated in accordance with the European Union (EU) Directives. As such, the laws of the Republic of Malta (member State of the European Union), not the state of New Jersey applies to its terms. We provided you with this notice so that you would understand the terms of your loan.[/SIZE][/LEFT]

[LEFT][SIZE=2]We are unable to deduct previous loan fees from your current loan balance, but we are willing to remove all fees from your current outstanding loan. We are prepared to offer a repayment arrangement in the amount of four (4) equal payments of $412.50 as payment in full of your outstanding loan. This represents the $1650.00 principle balance on your outstanding loan. Once payment has been received, we will consider this account paid in full with no further obligation.[/SIZE][/LEFT]

[LEFT][SIZE=2]The four (4) equal payments of $412.50 can be made via MoneyGram, and should be received by October 31, 2012. We have included the payment information below for your reference.[/SIZE][/LEFT]

[LEFT][/SIZE][/FONT][FONT=Arial][SIZE=2]MoneyGram Express Payment[/SIZE][/FONT]
[FONT=Arial][SIZE=2]Receive Code 4476[/SIZE][/FONT][FONT=Arial][SIZE=2]
[SIZE=2]Payable to NORTHWAY FINANCIAL[/SIZE]
[SIZE=2]Account 35197795[/SIZE]
[SIZE=2]City (Blank)[/SIZE]
[SIZE=2]State (Blank)[/SIZE][/LEFT]
[/SIZE][/FONT][FONT=Arial][SIZE=2]
[LEFT][SIZE=2]Alternatively, you may send your payment via mail. Please address all money orders, checks or certified checks to Northway Financial Corporation Ltd. and forward them to our North American mail processor at:[/SIZE]
[SIZE=2]200-15225 104 Avenue[/SIZE]
[SIZE=2]Surrey, BC, Canada, V3R 6Y8[/SIZE][/LEFT]

[LEFT][SIZE=2]Should you have any further questions, please feel free to contact our office with the information provided below.[/SIZE][/LEFT]

[LEFT][SIZE=2]Sincerely:[/SIZE]
[SIZE=2]Customer Support Department[/SIZE]
[SIZE=2]Fax: 1-866-772-4556[/SIZE][/LEFT]
[SIZE=2][FONT=Arial]Email: [EMAIL="supportresponse@zip19.com"]supportresponse@zip19.com[/EMAIL][/FONT][/SIZE]
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