What are the legal rights? I filed a dispute with the three credit reporting agencies and they say the debt does belong. There wasn't a debt because they have the merchandise and it was all saleable, tags and all with no damage.

You need to demand verification of the debt from the reporting agencies. If they can't provide it and refuse to take it off your report, threaten to sue them under the FCRA. If you want need more information on the law google the Fair Credit Reporting Act

The only document I signed was forced on my by loss prevention as they wouldn't even contact the police until I had signed. It says they "have the right to file a civil lawsuit against [me] to recover the damages inflicted by my shoplifting. However, there is a possibility that [they] may send [me] a Notice of Civil Demand, offering [me] the opportunity to pay [them] an amount of damages specified by state law in exchange for [their] issuance of a written release from all civil liability. If [I] choose not to pay [them] the damages set forth in the Notice of Civil Demand, [they] will retain [their] right to recover those damages by filing a civil lawsuit against [me] or pursuing any other remedies as allowed under law." Nordstrom did not file a civil suit against me and has no judgment awarded in their favor. I ignored the letters from FAI Collection, as directed by my criminal attorney and attornies on this site; however, they have since put this on my credit report. I only found out when we went to refinance our house and I had to be dropped from the mortgage loan because they couldn't refinance with this on my credit, so we had to do it in my husband's name only. According to the three credit reporting agencies, this will stay on my credit for 7 years. I followed the advice on here and filed a dispute with the three agencies and was denied. They say FAI Collect told them not to remove it and that by law they cannot remove it if a creditor tells them not to. I asked for verification of the debt from the credit agencies and they say they don't have one, they were only told of the charge, my name, and SSN, by FAI. They refruse to remove it saying they can't as long as FAI tells them to leave it. Now my credit is damaged, I had to remove my name from our home mortgage, and I don't know what to do. FAI and Nordstrom refuse to remove it and told me they have every right to put it on my credit with the stature of California law. I don't know what to do now. Can anyone help?