After a recent and abnormal decline of one of my sites in google SERPS (not panda or penguin related) I checked my backlinks and noticed that some really crappy sites, mostly directories, had links pointing to the root of my site, in the thousands, I requested some of them to please remove these links, some agreed, for some I had to register on their site to be able to remove them but one of those who replied to my request, a really crappy indian owned directory with thousands of links pointing to the root of my site, really surprised me when they replied to my request asking me to send money via paypal in order to remove those dodgy links. It is not a lot of money but I feel I am being blackmailed, what if this woman decides to link to me again next month or next week? It is really little what she is asking but I have principles and I am pretty sure it'd be useless. Any advice about what to do? Her site uses adsense and she seems to have a paypal account, also it is a .info domain name, maybe report it to their hosting company... I wish google had a tool to disavow those crappy links....
I thought of reporting it to all of them but I am not quite sure...

Any ideas?