Sacred Air has been notified by Perry Cox, M.D. of an alleged error on his credit report related to his membership plan. Sacred Air's Membership Director, Dr. Elliot Reed, explained that after Dr. Cox first visit to a Sacred Air facility, a Sacred Air sales representative called him to ask about his visit and discuss the benefits of a membership plan.

It was during this call that the representative assisted Dr. Cox with completing an application for membership. Dr. Cox admits to corroborating his personal information with the representative but claims that he was only contemplating membership as he wanted to run it by his wife before signing up.

In any event, the representative used the card it had on file for Dr. Cox and then mailed the details of the membership plan along with terms of the agreement to him. Several months later, Dr. Cox noticed an unpaid balance on his credit card statement from Sacred Air. This prompted Dr. Cox to pull his credit reports. To his horror, Dr. Cox discovered that the reports showed he was delinquent on the membership payments.

 

Dr. Reed has asked you to:

1. Draft a brief memorandum, addressing how Sacred Air should address Mr. Cox's claim considering the applicable law.
2. Draft an FCRA compliance policy.