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BW Legal...letter before claim?

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Hi there, I've read all stickies and have a question about my situation. I know what I'm going through isn't unique to me but I just needed some advice on the letter I've just received.

I recently received a letter from BW legal about how VCS has passed my account to them. They threatened in the letter to take this to court proceedings.

Can someone advise if I should class this as my letter before claim?
Then I know whether to respond using the template in post 2 on the newbies thread.

I've received the notice to driver already as I appealed early on like an idiot before reading the newbies sticky.

Many thanks in advance!!
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