My mate is freaking out as he is applying for a mortgage. I tried to make his understand that these letters are a scare tactic but he is leaning towards just paying.

Hello there. I am a player of a 5 a side football team and we use to be in a league called footballmundial. We left and I believe we owed a small amount but then we got an email saying that we owed a lot more than I expected (£160.) They are asking for money and the other team's fees for a game that they changed the time for so we got confused and turned up late and missed the game. here is the letter one of my team mates just received: We have been instructed by football mundial to commence formal debt recover against you. TAKE NOTICE There will be no further reminders sent to you or any opportunities for you to delay this payment any longer. Should you wish to avoid a COURT SUMMONS being served on you, payment must be made in full within the next three working days using the pre-paid envelope enclosed. Alternatively we accept all major credit and debit cards. We are advised you have been previously furnished with full details of our clients claim however please telephone our offices immediately should this not be the case and we shall endeavour to resolve and queries you may have. Please note that our client has consented to legal action and therefore any litigation issued against you may result in your credit rating being adversely affected. OK so I tried to ring but they are closed till Monday. I accept we may owe some but we do not owe £160. So what is my next move?