If someone is doing this then they may be guilty of defamation.  This is a false statement made by one individual about another in order to harm that person's character, reputation, etc.  The statement is slander if it is spoken and libel if it is produced in some other way e.g written or broadcast.

If someone makes such a statement then you can only successfully take action in the courts if you can prove the following –

   -  The statement is would lower your reputation in the eyes of 'right thinking people' – an insult wouldn’t be enough.

   -  The statement was communicated to a third party – just saying it to you doesn’t count.

   -  The third party would have to be able to identify you from the statement.

And if it’s slander then you’d also have to show that one of the following -

   -  You’d suffered financial loss

   -  You’d been accused of committing a criminal offence

   -  You’d been accused of having a contagious disease

   -  Your business, trade or professional reputation was damaged

   -  (If you are female) that your conduct (usually sexual) is immoral

You usually have just twelve months to bring an action following a defamatory statement but this can be lengthened if the court decides there is good reason.

Someone who has been the subject of a defamatory statement may want to seek amends (although there is a strong argument for keeping quiet and letting the whole thing die away).  There are several mechanisms for this –

   -  Get an apology – a letter, sometimes written by a solicitor with whatever threats (of legal actions) are felt necessary, may be enough to bring the person who made the statement to their senses and apologise, usually with an undertaking not to make the statement again.

   -  Use a mediator – sometimes an experienced third party can smooth things out and prevent them from getting out of hand.
Go to a professional body – such as the Press Complaints Commission.

   -  Request the person make amends – in line with section 2 of the Defamation Act 1996 – not something to do without professional help.

   -  Take out an injunction – now it’s not you telling them to stop, it’s the court and they have phenomenal powers to get their own way!  In practice it’s not easy and it needs some heavyweight legal support to make it happen.

   -  Sue for damages – make ‘em pay!  At least that’s the theory.  Any such action has to be started in the High Court so that’s barristers, solicitors, the whole thing.  Very expensive.  Did I say very?  No, very, very, very expensive.  No government funding for legal expenses and lawyers will usually as you for money on account before they will start the work – why?  Because they know just how much money you can burn through in this kind of action.  The papers are littered with stories of wronged individuals who have gone to court to have their reputations restored but finished up bankrupt.  This area of the law is a preserve of the very rich – who, at the end of it, are often the very poor!  Those who win usually get costs paid by the other side but even then there is an awful lot of cash to pay out at the start.

The person accused of the defamation can defend themselves in several ways against the action.  This follows broadly three or four approaches –
· The statement was either true or fair.
· They never made the statement
· The statement wasn’t defamatory or hasn’t done any damage
· Several other fairly technical defences such a privilege.

So, if you are faced with a problem of defamation what should you do?  Well, take legal advice by all means and send solicitors letters if necessary to get the statements stopped but only ever go to court as a last resort.