Quote Quoting bud1234
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So, I signed something that allowed them to invade my privacy even more just to get out of jail.
So, to be clear ... did you have pictures and fingerprints taken at a jail? Were you released with any documentation such as a citation or a document that said you were detained only pursuant to PC 849(b)? Were you just uncuffed and allowed to leave?

Whenever somebody does a background check on me, they can see 209 (B) which is KIDNAPPING TO COMMIT ROBBERY, even though it wasn't me.
How do you know this? If you were never booked, they will not see that on any local arrest records. What they MIGHT see is a court record (public document) indicating an arrest warrant (if that is what it was) was issued for the charges, but there would be no arrest record to support it if you were not booked and processed.

I don't think I can sue the Police Department, but can I sue the collection company?
No. They made what was likely a reasonable error and did not act with recklessness or malicious intent.

Penal Code section 851.8 allows for a person to petition for the removal of a record that indicates an arrest only. You may want to look into that.