Many people ignore the civil demand letter unless there is a civil court case filed. If you have an attorney, ask that person. Some attorneys advise not to do anything that might constitute and admission.
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You may choose to ignore this letter because there is no chance of being sued. However, if you choose to pay them, pay no more that $50 plus the retail value of any merchandise that may have been too damaged for them to re-sell. Do this in writing because they may intimidate you if you talk to them directly. Good luck
You should consult with an attorney based on the specific facts of your case. Sometimes I advise my clients not to pay the demand. It depends on a number of factors, including whether or not a criminal case has been filed and whether the statute of limitations has passed for the filing of criminal charges.