First I must object to this horrible story. My abduction to your overworld by Hercules was illegal, and I am still angry at Pluto for it!
That said, I think your translation "heard stories about" is fine, although "stories" sometimes suggests something a bit more exciting or adventurous than fama does: it may be an account of something or someone, a story, or someone's reputation. Depending on context, "stories" may fit. "Who had heard about Hercules's reputation" is also fine.
The expression is indeed used by classical authors:
Vespasianus in Italiam resque urbis intentus adversam de Domitiano famam accipit, tamquam terminos aetatis et concessa filio egrederetur... (Tacitus, Historiae IV.51)
Church & Brodribb (1873) translate this as "heard an unfavourable account of Domitianus", which I think is a very good translation. In your case, "had heard of Hercules" is possible, although the context seems to suggest something a bit stronger and more favourable.
nam Romae neuter animi habitus satis dici enarrarique potest, nec [habitus animi] quo incerta exspectatione euentus ciuitas fuerat nec [habitus animi] quo uictoriae famam accepit. (Livius, Ab Urbe Condita XXVII.50.3)
Roberts (1912) translates this as "the enthusiasm which the report of the victory aroused". Translated a bit more literally, it would be "the state of mind in which they received the report of the victory". This is a bit different from Tacitus and from your story, in which it is about merely hearing news: Livius is describing accipere as a kind of action, as listening to a message and reacting to it, together comprising accepit. "Hear a report" or "receive a report" are good basic translations in such a context.