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- My client has been sued and there is a claim for credit damages. How should I proceed? An allegation of credit damages should be taken very seriously. Credit damages can readily result in five or six figure damage awards. Thus, the first thing you should do is contact a credit damage expert.
- What will a credit damage expert do for me? There are three essential areas where a credit damage expert will be an important member of your defense team. First, the expert will help you understand how to conduct discovery on the credit damage claim aspects of the case. The expert will let you know how to frame interrogatories, what documents to obtain, and how to depose the plaintiff and the plaintiff’s credit damage expert. Second, your expert will provide an evaluation of the plaintiff’s claims and advise you regarding the possible damage exposure your client has. Third, your expert will testify at trial or in an arbitration as necessary.
- How can I find a credit expert? Since the credit damage evaluation field is relatively new, there are not many qualified experts, however you have come to the right place. Georg Finder is a qualified and published credit damage expert who offers his services to Attorney’s and their clients for both defense and plantiffs. The best way to contact Georg is by using the form found here:
- How do I identify a qualified credit damage expert? It is crucial to understand that credit damage can be evaluated only by someone with specialized training and practice in the field of credit evaluation. Thus, an economist or an accountant will not qualify. Nor will an investment banker or bank manager. Likewise a bookkeeper is not an expert in credit damages. Carefully examine the credentials presented to you by any credit damage expert you contact.
- What is involved in a credit damage claim? There are three kinds of losses a plaintiff may be alleging to underlie a credit damage claim. They are loss of credit capacity, loss of credit expectancy, and increased out-of-pocket costs. Each is described in some detail below.
- What is loss of credit capacity? Loss of credit capacity refers to the decrease of available credit and/or an increase in the interest rate for available credit, thus an increase in the cost of credit. Factors to be considered when determining whether there is a loss of credit capacity are:A plaintiff may claim that because of the occurrence of the events giving rise to the case available credit such as credit cards, a car/truck loan or lease, or a mortgage has been adversely affected. A plaintiff may also claim that because of the occurrence of the events giving rise to the case, it became impossible to make timely payments and therefore credit cards were cancelled or credit limit(s) were lowered.A plaintiff might additionally claim that because of the occurrence of the events giving rise to the case, credit to purchase or refinance property was denied. Any or all of these factors may be present when loss of credit capacity is alleged as an element of credit damage.
- What is loss of credit expectancy? Loss of expectancy differs from loss of capacity as it involves predictable and foreseeable future use of credit as distinct from credit capacity which involves the inability to continue to utilize credit as the injured person could before damage to credit.Credit expectancy has to do with attaining future lifestyle goals, thus there may be an allegation of the loss of credit expectancy when a plaintiff is unable to purchase a first real property, or is unable to afford a vehicle upgrade, or is unable to obtain a credit card limit increase when there was a clear expectation to be able to do so.
- What are increased out-of-pocket costs? Even when a plaintiff can still borrow or use credit, credit may cost more than it did before the occurrence of the events giving rise to the case when creditworthiness of the plaintiff has been diminished. For vehicle or real estate purchases or leases, for example a higher down payment or increased interest rates reflect increased out-of-pocket costs to obtain credit.Thus, a plaintiff may allege that a credit card interest rate was 10% before the events of the case and since the occurrence of those events the credit card company has notified the plaintiff that the rate will increase, this would be an increase of out-of-pocket costs. Any increase of out-of-pocket costs can be considered when measuring credit damage.Note: If credit interest rate changes occur because of a general increase of rates, that is NOT credit damage.
- Aren’t credit damages speculative in any event? No, they are not. Speculative damages are damages that are highly improbable or contingent on the occurrence of a future event. They are speculative when the existence of the damage itself is uncertain. Credit damages are actual, they are not improbably or contingent on a future event. The determination of the value of the damages may be controversial, as may be the case with respect to any form of damages, and therefore they are subject to proof and the determination of the trier of fact. This illustrates the critical importance of retaining the services of a qualified credit damage expert.
- How do I hire you? After you send us a preliminary description of the case, we will send you an email letting you know how we will proceed. We do not need to meet, and if you prefer to meet, we charge a preliminary consultation fee of $900. Otherwise we can begin by mail or fax at no charge.
- Fees & Payment All fees will be set forth in the retainer agreement. We require that all fees be paid prior to the release of a verbal opinion or written report.
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