Use of Social Media for Determination of Credit Status

More lending companies are mining social media such as Facebook and Twitter to help determine a borrower's creditworthiness. Is this a problem legally or otherwise? IMHO, no it is not.  In the absence of the affirmative selection of privacy settings, once someone elects to put their information out there in social media, sorry Charlie, you have, in essence "opted-in" to the widespread sharing of your personal information. Information captured that is more broadly captured on the worldwide web presents a related, though slightly more nuanced, difference. Also subject to widespread access and use, likewise expectations of privacy should be reduced accordingly. That said, what to do about information that may be untrue, inaccurate, or downright defamatory? What protections exist there?

http://www.theaustralian.com.au/business/wall-street-journal/concern-in-us-as-social-media-decides-credit-status/story-fnay3ubk-1226799034240#