citibank reporting false bankruptcy on me......

been fighting with citibank over one of their cards i have ZALES. over 1 year citibank has been reporting to the credit bureaus that i have a bankruptcy when in fact i have never filed for one. They once removed the statement from my report back in Nov. of 05 but it is now back on and they are giving me a hard time about taking it off. When i talked to their bankruptcy dept. they said that since my sister had a bankruptcy and her name and address where very similar to mine they assumed it was me. I have been denied auto loans, got higher interest rates for a mortgage loan i applied for, and have been denied credit cards based on this false bankruptcy. What can i do about this legally, i'm tired of trying to be nice and deal with citibank, now i rather just sue them.

on another note i come to understand that a credit bureau is not suppost to re insert information it previously removed without notifying me. well equifax did just that in regards to the bankruptcy comments. they put the comments back on and never notified me. any and all advice will be greatly apreciated.

Maybe hiring an attorney to first write a letter to them may speed up the process. They consult with an attorney to find out what if any legal action can be taken against them for negligently reporting this info and causing you monetary damages.