1. I am not lawyer but:
Is threatening someone with legal action illegal? Yes, if the intent is to resolve a good-faith dispute without litigation. But the threat of legal action without the intention of taking it may constitute extortion. Note that the person making the settlement request does not need to be right that the claim is winnable. But it must be made in good faith.Feb 24, 2020
OP needs to spend some coffee money and ask questions of a local attorney.