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. In most jurisdictions, credit reporting legislation requires either the permission of the debtor or notice to the debtor of an intention to obtain a consumer credit report on the debtor.

Question

Quizplus · Accepted Answer

Credit reporting legislation in many jurisdictions indeed mandates that the entity requesting a credit report must either have the consent of the individual in question or must notify the individual that they intend to obtain a credit report. This is to ensure privacy rights and allow individuals the opportunity to be aware that their credit history is being reviewed.

Phil Entered into an Agreement with Marina Boats for the Purchase