It's Palmer Reifler & Associates and they take advantage of laws that allow the entity that was the subject of the theft to make a demand. It is ridiculous, it is legal, but they won't sue. It may seem like extortion but its not since they have nothing but hot air to back up their empty threats. Good luck.
I have had many clients simply ignore those letters, but you may want to consult with an attorney about your options and about potential consequences for your daughter. Hopefully nothing further comes of this situation.