Phil entered into an agreement with Marina Boats for the purchase of a new sailboat for $21,000. The purchase was to be on credit, subject to a favourable credit report on Phil. Marina Boats checked with Credit Reporting Company and was informed that Phil had defaulted on a number of debts, and presently had judgments in the amount of $30,000 against him. The credit arrangement for the purchase of the boat by Phil must disclose only the amount borrowed, the terms of loan, the monthly payments, and the true interest rate.

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The credit arrangement must also disclose any information about Phil's credit history that influenced the decision, as required by laws such as the Fair Credit Reporting Act (FCRA) in the United States, which mandates that adverse action notices be provided if credit is denied based on information from a credit report.

Phil Entered into an Agreement with Marina Boats for the Purchase