Well, in the end, it looks like they brought it down to about $80. If you subtract the $40 that you would have paid for the option, you're only out $40. I know that it's the principal of the thing, but legal threats seem a bit much considering that a lawyer will charge more than $40 just to read that letter. If you've done alot of business with them in the past, there's no harm in sending one more letter telling them that you will move your business elsewhere (and how much that is worth). But without documentation, you're probably SOL.