Can you sue a creditor that reported an error on your credit report?

Sure, you can sue just about anyone for anything. Whether or not it is worthwhile is another issue. You can sue creditors for any number of things, breach of contract, bait and switch, violation of anti-trust laws, slander, and so on, The thing that creditors fear most... class action suits. Every debtor has the legal right to file such a suit against creditors and CRA's.