Real Estate Law
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They should not have reported such a small amount to the credit bureau, especially an escrow shortage. There are procedures now where you can correct mistakes in credit reporting on line. See: http://www.myfico.com/crediteducation/rights/fixinganerror.aspx
There is no specific laws or credit regulations that go into what may or may not be reported to credit bureaus. All you can do is follow the procedures for having it removed, which I'm sure you already know about. This site may be helpful: https://www.consumer.ftc.gov/articles/pdf-0096-fair-credit-reporting-act.pdf.