CMI Credit Mediators Inc abusive on phone, threat to hurt your credit regardless of the facts Upper Darby Pennsylvania

This is an abusive company run by disgruntled owner (owners?) who yell verbal threats at you on the phone and assume that they have the power to "hurt your credit" (as they threaten to do unless you pay them the amount they demand). The amount they demand is based on whatever the company that has hired them tells them. There is no factual accountability, and I am not even sure if the confines within which they operate are even legal. Here is how they operate:

Company X hires CMI and tells them that Company Y owes company X $5000.

So CMI contacts Company Y and tells them they need to pay $5000 or they will hurt the company's reputation. Let's say company Y does not owe $5000 because company X did not deliver on the goods/services that the $5000 was meant for, and company Y explains this to CMI. CMI then yells verbal threats to company X such as "pay the $5000 or we'll hurt your company" regardless of what the facts may be. What should company Y do in such a case?

CMI Victim
Los Angeles, Colorado
U.S.A.