Need a little help on what to do next

I live in New York and on May 25, 2012 I took out a loan from Zip19 for $1055.00. I am also retired and receive a pension. The loan was due on June 8 in the amount of $1265.00 and I did not have the funds available. I have had several loans with Zip19 and have always made the payments which included the interest on time. I received a phone call from their e-care department and the person was really rude and disrespectful, even when I told him that I was willing to make payments to payoff the account. So I hung up on him. The following day the same person called with the same attitude and I still attempted to make payment arrangements and he still did want to hear it. He threatened to report the outstanding loan to teletrack and my payroll department. I have sent them an e-mail with my payment arrangement and received an e-mail back. First my response then their response with an attachment.

Dear Lender,

It has come to my attention that payday loans are prohibited in the state of New York. Therefore, the loan contract that I have with you, according to my state's laws, is not enforceable. Although I am not required to do so, I am willing to repay the principal balance of the loan. To date, I have received $1055.00 and have made no payments. I am willing to repay the $1055.00 balance via credit card in 5 monthly installments of $211.00 each on July 2, 2012, August 2, 2012, September 2, 2012, October 2, 2012 and November 2, 2012.

At this time I am revoking all ACH authorization. You are no longer authorized to withdraw payments from my checking account. I am also revoking any wage assignment I may have signed. I have given a copy of these revocations to both my bank and my employer. Any future attempts to collect funds in this manner will be blocked.

Please contact me to set up payment arrangements as outlined above

[COLOR=#000][FONT=Tahoma]ATTN:ask for hr,Responses will only be handled by telephone, 1-877-888-1534.STATEMENT OF CONFIDENTIALITY:THE DOCUMENT ACCOMPANING THIS COPY TRANSMISSION CONTAINS CONFIDENTIAL INFORMATION. THE INFORMATION IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR INTENDED NAME ABOVE. IF YOU ARE NOT THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISCLOSURE, COPYING, DISTRIBUTION, OR TAKING OF ANY ACTION IN RELIANCE ON THE CONTENTS OF THIS COPIED INFO IS STRICTLY PROHIBITED.DO NOT RESPOND TO THIS EMAIL.Email responses are not monitored. For prompt assistance please phone us immediately . Contact information is located in the attachment portion of this email.[FONT=Verdana][SIZE=1][FONT=Verdana][SIZE=1][LEFT]Dear [/LEFT]
[/SIZE][/FONT][/SIZE][/FONT][LEFT][FONT=Verdana,Bold][SIZE=1]ask for hr[/SIZE][/FONT][FONT=Verdana][SIZE=1],[/SIZE][/FONT][/LEFT]
[/FONT][/COLOR][FONT=Tahoma][FONT=Verdana][SIZE=1]
[LEFT][SIZE=1]This correspondence is being sent to you upon your request in order to complete a verification of[/SIZE]
[SIZE=1]employment regarding your employee, my name[/SIZE][/SIZE][/FONT]
[COLOR=#000][FONT=Verdana][SIZE=1]Please verify if the following information regarding my name i[/SIZE][/FONT][FONT=Verdana][SIZE=1]s correct:[/SIZE][/FONT][/COLOR][FONT=Verdana][SIZE=1]
[SIZE=1]Current employer: my place of employment[/SIZE][/SIZE][/FONT]
[COLOR=#000][FONT=Verdana][SIZE=1]Current Employment Status: Active[/SIZE][/FONT][/COLOR][FONT=Verdana][SIZE=1][/LEFT]

[SIZE=1]SSN: [/SIZE]
[/SIZE][/FONT][LEFT][COLOR=#000][FONT=Verdana,Bold][SIZE=1]XXX-XX-XXXX[/SIZE][/FONT][/COLOR][FONT=Verdana,Bold][SIZE=1]
[LEFT][SIZE=1]ask for hr[/SIZE][/LEFT]
[/LEFT]
[/SIZE][/FONT][LEFT][COLOR=#000][FONT=Verdana][SIZE=1], given the importance of this matter, we look forward to receiving your response to the toll[/SIZE][/FONT][/COLOR][FONT=Verdana][SIZE=1]
[LEFT][SIZE=1]free number referenced below. We appreciate your cooperation.[/SIZE]
[SIZE=1]Sincerely,[/SIZE]
[SIZE=1]Antoinette Stevens[/SIZE]
[SIZE=1]1-877-888-6140[/SIZE]
[SIZE=1]cc: my name[/SIZE][/SIZE][/FONT][FONT=Verdana,Bold][SIZE=1][/LEFT]
[/SIZE][/FONT][COLOR=#000][FONT=Verdana][SIZE=1]Reference Number[/SIZE][/FONT][FONT=Arial][SIZE=2]: [/SIZE][/FONT][FONT=Verdana][SIZE=1]35059353[/SIZE][/FONT][/COLOR]
[/FONT]
.AOLWebSuite .AOLPicturesFullSizeLink { height: 1px; width: 1px; overflow: hidden; } .AOLWebSuite a {color:blue; text-decoration: underline; cursor: pointer} .AOLWebSuite a.hsSig {cursor: default}So I sent them a second email requesting the same payment arrangement and am awaiting a response. Should I contact them via phone like they ask or do I wait for them to respond. I want everything in writing, because they could always deny what was said. And should I still send them the payment as per my schedule. What else should I do?
[/LEFT]