HELP! Does this sound right?

My FH & I booked our officiant Rev Douglas Trees through the Catholic Answer. We paid $600 for him to come to MG where we are getting married and perform a 20 minute ceremony. I met w/ him for the first time a few days ago. He tells me that there was a problem w/ our application. He hands me a letter from the diocese(sp) (dated Sept 2005) stating that any couple residing at the same address is living in sin and therefore will need a dispensation which will cost $300. He said that the letter was not for us, but that is the church's viewpoint for all couples in that situation.

He then asked me(as a therapist, b/c he is a psychologist as well as a Rev) how I felt about this. I told him that if the sin is fornicating before marriage then there has been no sin, as we have been waiting till marriage to share that w/ each other. We live together b/c we love each other and we can not afford to live seperately, but there is no sin there. He shook his head knowingly and dropped mention of the subject.

Later on, after our lunch was over, he brought up the fee again...I felt blind-sided and was not sure what to do. I paid the fee, feeling like - w/ a month left before the wedding, how can I fight with this man that I am supposed to trust.

PLEASE TELL US, DO YOU THINK THAT THIS FEE IS FOR REAL, SHOULD WE HAVE PAID IT? ARE WE BEING SCAMMED????