Margaret D. Edwards

c/o 739 Dalbey Drive

Las Vegas, New Mexico

Phone/Fax:  505-425-0659

January 5, 2003

Catherine Sanchez

Law Offices of Catherine Sanchez

Post Office Box 37290

Albuquerque, New Mexico 87176

RE:  Metris Companies LLP v. Margaret D. Edwards, your file number 802837

Dear Ms. Sanchez:

            In regard to your December 17, 2002 unsigned letter to me concerning Direct Merchants Bank, please be advised that I have never received a response to the questions I posed to them, (copies of which were previously sent to you), and, therefore, have concluded that Direct Merchants Bank is operating fraudulently and that it has not loaned me anything but a liability.  Until they prove to me that they have advanced me a bank asset, I am under no obligation to them whatsoever.  Their records must still show that they owe me an asset because what they were to loan me was created by my note to them.  Direct Merchants Bank has not fulfilled its contract with me, and, further, as I have previously stated, the original application which initiated the contract, (a copy of which you enclosed in your letter), was fraudulent on its face, as it did not provide full disclosure.

            Since Direct Merchants Bank has failed to respond, with particularity, within the reasonable time frame I stipulated, I consider this matter to be closed on the part of you, Metris Companies LLP and Direct Merchants Bank.  Any further contact from you, Metris Companies LLP and/or Direct Merchants Bank will be considered harassment and will be dealt with accordingly.  Any and all other correspondence will be refused, and telephone calls will not be accepted.  I shall return their credit card and demand proof of the cancellation of all of the related computer-generated bookkeeping entries.  Failure on the part of Direct Merchants Bank to cancel their computer-generated records or any further action by them or any of their agents to collect on this account will result in immediate reprisal.

Sincerely,

All Rights Reserved

Margaret D. Edwards  

Without Prejudice    UCC 1-207