A company (utility) is reporting that I owe a debt that I do not owe. I have proof that I cancelled the utility (without penalty) 2 months before they stopped billing me. I have actually overpaid but they are reporting to the credit bureaus that it is past due and have collection agencies harassing me. They do not even report the same amount of the debt to the same companies. I have repeatedly objected in writing and asked for proof that I owe the money and each time that particular credit collector will stop and a new one will start a few weeks later. Can I sue the utility that, at this point, is intentionally reporting a false debt as due? I am extremely confident I can prove that the money is not due but my question is do I have a legal claim for the false reporting?
You can always sue, but the law doesn't support you. The procedure for correcting an inaccurate item on your credit report is contained in the federal Fair Credit Reporting Act, and I am posting a link to that law.
Your state may also have laws governing this process as well, and I would refer you to the state website to search for these laws.
The typical protocol is to contact each of the credit bureaus online or by mail and dispute the item. By disputing the item, you are asking the credit bureaus to investigate this issue. if you have evidence, you may submit it with your dispute.
Mistakes on credit reports are very common & law firms make a good living correcting these mistakes for people that lack the skill to do this on their own.
There is nothing personal about the creditor making a mistake on your credit report. It happens thousands of time a day. Hope this perspective helps!