Data Line Credit Corporation Norm Rodgers Account was paid if full, 1 year later reports account key derogatory Huntington Beach, California

January 25th, 2010 I received a notice via mail from Data Line that they had towed a car that I had sold months prior and due to towing fees, storage of vehicle and the subsequent SALE of the vehicle that I was responsible for a total amount of $1300.  The gentleman that I sold the vehicle to failed to submit his transfer of ownership paperwork to the DMV, so the DMV had no record of the vehicle being sold other than the bill of sale.  The gentleman agreed to pay the amount owed to Data Line and paid them in March 2010, he paid them with a money order.  Him and I are still in contact and he has shown me proof of the money order that was sent to Data Line and still maintains records of this transaction to this day (Feb.2011).  Upon contacting Data Line I was told that the debt was never paid, however, according to Experion my credit report says that the account was CLOSED and Data Line is reporting my account as KEY DEROGATORY (for those of you who don't know what this means, it means that the account was settled for less than the original amount owed...but that it was PAID off and closed).  It is to my belief and the belief of the gentleman that I sold the car to, that Data Line is knowingly making false reports to credit agencies in the attempt to scam people into paying for debts multiple times.  I would urge that Data Line be investigated fully.  A close friend of my is a forensic accountant, and I plan on contacting him asap to investigate my personal matter fully.