There are several things that you need to do... the first is to get a copy of your credit report and dispute any entries that are not accurate.  Keep the copy of the report even if it is accurate so you see any changes that they are threatening to makes in the even they come to fruition.Your second step is to file a complaint with the Texas Attorney General and the FTC.  This conduct certainly violates the requirements of credit repair organizations.  If there have been other complaints, then one of these agencies is likely to take some measures against the company.  If this is a first time complaint, you have at least started building a record against this company.  The filing of either complaint is free.Your third step is to consult with a defamation and/or consumer law attorney.  See if they will send a simple demand letter on your behalf-- requesting that they cease and desist these threats.  Often, a lawsuit threat letter will fix the problem.  If they continue with their threats, then you could have several potential suits including a defamation and FCRA suit.