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Sheesh! What a joke! I really feel for you. They obviously know they have absolutely no grounds, but are making your life a living hell and costing you a small fortune in Lawyers etc. What spiteful, nasty people. AND why are they not listed on the tenant data base's? If they are...

Good luck. We will all be thinking of you.

My gut says that it is just a money grab. Maybe they don't even have a solicitor, since you can't get any details from them. Even so, I would still be tempted to just pay them because you never know how these things would turn out. But if you do that, make sure you have a written agreement...

It would certainly explain them emptying the water tank if they thought the water was contaminated. Doesn't explain some of the other wild claims.

Like Ozperp said, I can tell that you have been through a lot, but I am unsure what it really is. The facts I can gain are: Tennants emptied a water tank They are looking to rent elsewhere but are having trouble They have mentioned that they are going to sue you for a broken finger...