Legal Question in Credit and Debt Law in Texas

Collection agency notifying credit companies of medical charges in dispute

My daughter had surgery and after a year had passed, I received a bill from the hospital stating I owed a certain amount of money. I reviewed my records and found the original billing, the payment from the insurance company and my payment on a credit card statement (no actual receipt but the hospital and date are clearly shown on the statement). I contacted the hospital, expained exactly what I still owed then paid the portion of the bill that I feel was due. The hospital cashed my check but continued sending me bills for the balance due. They turned it over to a collection agency and I replied twice in writing to dispute the amount being collected. The second time was a certified letter showing all the documentation I had proving I owed nothing. The latest notice I got indicates tha the collection agency is now notifying credit agencies to show this on my credit report. What recourse do I have with the collection agency who is ignoring my responses and who is not providing me with a detail of billing from the hospital showing a credit to my account for the amount in question? I want to sue the hell out of the collection agency but do not know how to proceed.

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