This is why I think companies that incorrectly send you to collections or give credit to someone using your identity should not only be on the hook for the money they lost but also liable to the person they are forcing to clear their name.

Years ago I rented at a crappy apartment complex. When I left their check out basically meant you always owed them ~$200. I paid and moved out of state. 6 months later I get a collections call saying I didn't pay the bill. I told them I paid it, she said it wasn't and said it was going on my report unless I paid that day. Luckily I paid by check and my bank (like all banks I guess now) keeps canceled checks online for pretty much ever. So now I had to go back 6 months and find this check then call the apartment then the collections agency, etc... A HUGE hassle and time waster for me all because the apartment complex employed incompetent people.

The kicker was that the girl trying to collect from me said "people make mistakes and you can't blame them." Um, when I make a mistake and forget to pay a bill you guys jump all over me. You make a mistake and it's still my problem to solve.

It's a weird situation. You're not legally liable for the debt incurred by the thief even if you don't bother to prove anything (although they will still hassle you by phone), but your credit is destroyed.