Oh, yes, this is a common occurrence, I am afraid. There are many, many such stories that get passed around, and not just about language.
Two language-related books that do a superb job of debunking are mentioned in our reference works pages:
Bauer, Laurie, and Trudgill, Peter. Language Myths. London and New York: Penguin, 1998. A fundamental work for the beginning language scholar: dispels and explodes many long-held but inaccurate beliefs about language. “Laurie” is a man’s name, in this case.
Wilton, David. Word Myths: Debunking Linguistic Urban Legends. New York: Oxford University Press, 2004. With the Bauer/Trudgill book above, this work is highly recommended as a way of answering questions about word origins that are frequently asked and often wrongly answered.