The thing is, and you said it yourself, you "forgot" to email or fax in confirmation of your intenet to quit. That's on you.
We use them and couple of others and last year we did very well!

We still use them, we are seeing a lower close rate this year compared to last with all lead sources internet or otherwise.
The economy is really the culprit in a lot of our recent financial woes. Customers are signing up but then getting cold feet, I run into that all the time, the thing is, I have an exceptional marketing room that doesn't take that as an answer. You have to really grind on these leads, that's what it's about.
As far as the area, with the way things are going in this economy, if I paid for a lead I would try to run it.
At least with the lead co's I can get credit for some of the bad ones. I can't do that with the phone book or other advertising realms.
If that lead was willing to meet with you, I'd run it. I leave (within reason) no stone unturned in this ever failing economy.
I noticed you had a problem with CalFinder and Reliable according to your other threads, maybe the lead gen co's aren't for you..