That a simple letter can be so effective may seem almost too good to be true, especially if you have unsuccessfully argued with your adversary in person or over the phone. But a letter works in as many as one-third of all cases, probably because in the legal context the written word is far more powerful than speech. To see why, think about the times you have found yourself embroiled in heated consumer dispute. Chances are, nothing. For all sorts of reasons, from a death in the family to the chance to take a vacation, to simply not having enough time, you didn't pursue the claim.
People expect that.
But things change if you write a letter, laying out the reasons why the other party owes you money and stating that if you fail to get satisfaction, you plan to go to small claims court pronto. Now, instead of being just another cranky face on the other side of the counter or a voice on the phone, you and your dispute take on a sobering realness. For the first time, the other party must confront the likelihood that you won't simply go away, but plan to have your day in court. And they must face the fact that they will have to expend time and energy to publicly defend their position. If your position has at least some merit, the chances that the other party will be willing to pay at least a portion of what you ask just went way up.