Nick...this individual has to prove damages.
A letter from an attorney is just mail. That's all. Mail.
People who actually have claims file suits and someone comes to your door, knocks on it, and hands you a subpoena. (Sometimes those come in the mail, too, but they're serious.) Attorneys count on people being uninformed and frightened and therefore writing a check.
Even getting a judgement doesn't necessarily mean anything. My husband co-signed for one of our daughter's and her friend's rents. Due to a long and silly story, we ended up getting sued by the landlord. We lost. She got a judgement that we owed her X amount of dollars. I was frightened until my husband said "forget about it; winning is one thing, collecting quite another." We never heard another thing from the landlord. Apparently she's just a court fan and was satisfied with her little piece of paper.
Never get nervous too soon.
