Consumer Confidential: Why buying a car may result in a scary (and pointless) 'adverse action notice'

An adverse action notice - it's something consumers want to avoid at all costs, typically indicating you've been turned down for a loan or there's something seriously wrong with your credit file.

Such notices are required by federal law when credit is denied. But in some cases, including car purchases, they may not mean what they say, and in fact may be frightening people unnecessarily.

Trust me on this.

I got one of these notices the other day and, not to brag, I've got sky-high credit scores, as might be expected for someone who gives consumer tips for a living.

Yet here was a letter from a local dealer related to my recent purchase of a used car that was in considerably better shape than the 10-year-old car I traded in.