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. If credit is denied because of an unfavourable credit report, in most jurisdictions, the seller must inform the buyer of the reason for the refusal of credit.

Question

Quizplus · Accepted Answer

Under the Fair Credit Reporting Act (FCRA) in the United States and similar regulations in other jurisdictions, if a credit application is denied based on information obtained from a credit report, the creditor is required to provide the applicant with a notice that includes the reason for the denial, the name, address, and phone number of the credit reporting agency that supplied the report, and information on the applicant's right to a free copy of the report and to dispute the accuracy or completeness of any information in the report.

Phil Entered into an Agreement with Marina Boats for the Purchase