Ervin, a 59-year-old farmer, applied for a $50,000 life insurance policy.

"Sorry, said the Northwestern Mutual agent two weeks later. "The Company turned you down."

Undaunted, Ervin went across the street to the Surety Life Company and applied. Back came the same reply. Ervin was incensed.

"My health is excellent," he said to the agent. "Why can't I get life insurance?"

The agent adopted a confidential tone. "You're not a good risk because you're a drunk," the agent said.

"The Credit Bureau reports that you're a frequent and excessive drinker and that your health and welfare suffer from your drinking."

"That's a damned lie," said Ervin as he hurried off to see his lawyer.

The lawyer filed suit against the Credit Bureau for libel and damage to Ervin's good name and reputation. The Credit Bureau manager denied any liability. Credit bureaus cannot be sued for information in retail credit reports. These reports are necessary to the business world. If we have to worry about lawsuits, we won't be able to give fast or detailed reports," he said.

If you were the judge, would you allow Ervin to sue the Credit Bureau?

The Credit Bureau must pay for its inaccurate report, ruled the Court. "We recognize the need for such credit reports to the business world," said the judge. "But we also understand the need to protect an individual from the secret destruction of his good name and reputation." When a credit report is prepared with diligent care in finding the truth, then a Bureau is immune from suit. But, when it is prepared with a reckless disregard for accuracy and truth, then the individual who is harmed may sue." Under the Fair Credit Reporting Act passed by Congress, individuals may now obtain copies of information in Credit Bureau files, and have inaccurate information removed. (Based on a decision of the Nebraska Supreme Court.)