If a creditor reports false information to the credit bureau and refuses to change it can you sue for malicious libel or is it only for incorrect credit reporting with the FCRA cap of 1000 dollars?

If the creditor reports false information then all you need to do is dipute this with the 3 major credit bureaus, experian, equifax, and trans-union. Screw the creditor b\c if they can't prove it, the bureaus take the information off. Cut them out of the loop entirely, suing them is only going to cost you money. The previous answer is naive. A lot of creditors refuse to correct erroneous information. Many times when the credit bureau contacts the creditor after your dispute, some "law of minimum effort" jerk who gets $8.00 an hour just sends back an e-mail to verify without bothering to do the work. Sometimes they're just plain mean. All a credit bureau can do is report what is given to them by the creditors -- garbage in/garbage out. You can sue them for actual damages, to answer your question.