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What is credit damage?
Credit damage occurs when negative information appears in a credit report or other credit file which causes an individual or business to lose access to credit either in the same amount or at a cost similar to the cost available prior to the damage to credit. If the credit damage was caused by the actions of another, it may be a matter for litigation. If the damage to credit was self-inflicted, it is not a matter for litigation.

What is a credit score?
A credit score is a computer model based score ranging from 300 to 850 points. The score is intended to rate the probability that an individual borrower will default on a loan. Each of the three national credit bureaus utilizes its own model and derives its own score. Most major lenders also have their own score. A credit score is sometimes called a FICO score.

What can cause credit damage?
Any derogatory or negative remarks which appear in a credit file that decreases a borrower’s attractiveness to lenders, insurers, or employers may be a cause of credit damage. It can be caused when inaccurate information regarding account activity, such as late payment, collection activity, or charge-off is reported. Credit damage can be confirmed by accurate information in the credit report and other sources, which reveals credit damage inflicted by fraud, breach of contract, personal injury, divorce, identity theft, or other occurrences. Information in the public record, such as judgments, liens, and bankruptcy, can cause or confirm credit damage.

Can my attorney calculate credit damage?
Your attorney is trained to represent you regarding the law that applies in your case and may be able to determine whether you are the victim of credit damage. Just as you would not expect your attorney to provide medical or mechanical expertise, you should not expect your attorney to provide credit damage expertise or to determine the extent of your credit damage. It is important for your attorney to be aware of the requirements to properly claim credit damage in your case. It is also important for your attorney to consult with a qualified credit damage expert.

How do I know if my case will benefit from credit damage?
A credit damage expert will assess your credit damages to calculate an estimate of the value of your credit damages. Your attorney, with the assistance of the expert, will then advise you whether your case will benefit from credit damage.

How long has this kind of compensation been available?
The first case where credit reputation damage was compensated occurred in Missouri in 1912.

Why don’t more people know about credit damage?
For many years measuring credit damage was considered impossible. In 1995 an arbitrator ruled that it is possible to scientifically and objectively measure credit damage. The reality is that the subject is not taught in law schools and only rarely in continuing education for attorneys, so the availability of credit damage is not widely known or understood.

Can I represent myself to make a claim for credit damage?
Of course anyone can attempt to represent themselves in legal matters. Good sense suggests, though, that since you are likely not a legal expert or a credit damage expert, you will be better off not attempting to handle your case yourself. The strongest way to make your claim for credit damages is with representation by an attorney knowledgeable in the field who will be assisted by a qualified credit expert.

How much can I expect to get?
The amount that you might recover as damages can only be determined after all the facts of your case have been reviewed by the expert.

Will you negotiate your fees?
Fees are not negotiable. We can create a mutually agreed upon payment schedule. A deposit will be required. The results of file review will be provided after payment in full is made.

I have a really good case, but I can’t find an attorney to represent me. What can I do?
There can be different reasons why an attorney does not want to take a case. Perhaps the attorney does not think there is sufficient value in the case to make it worthwhile. Perhaps the attorney doesn’t understand credit damages. Sometimes what looks like a “really good case” to the injured person is not as good as that person would like. A victim of credit damage may have to show an attorney the potential value of a case, so you might have to hire a credit damage expert yourself to prepare a credit damage measurement report to present to an attorney.

My attorney says that there is no such thing as credit damage and that I can’t be compensated. What should I do?
Ask your attorney to visit this website and look at the examples of the kinds of cases where credit damages have been recovered. You can also tell your attorney that there is an available MCLE seminar concerning credit damages and how they can be recovered with the assistance of a qualified credit damage expert.

How many credit damage experts are there? Who else can I talk to?
Right now there are very few credit damage measurement experts because the specialty is still new, dating back only to 1995. As the viability of credit damages becomes better known, it is likely that there will be more qualified experts in the field. You might search the internet or your local library to find others in the field.

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:

Because of the events which occurred, your access to credit such as credit cards, vehicle loans or a lease or mortgage became less available to you.
Because of the events which occurred, you became unable to make timely payments and therefore your credit cards were cancelled or credit limit(s) were lowered.
Because of the events which occurred, you have been denied credit to purchase or refinance property. If monthly payments have increased or the number of payments effectively increases the amount of credit now ‘affordable’ is decreased. Any or all of these factors may be considered when measuring loss of credit capacity 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 you could before damage to credit.
Credit expectancy has to do with attaining future lifestyle goals, thus there can be loss of credit expectancy when you are unable to purchase the first real property, or upgrade of a vehicle, or obtaining a credit card limit increase as you had expected to be able to do.

What are increased out-of-pocket costs?
Even when you can still borrow or use credit, credit may cost more than it did before the events occurred which damaged your credit because your creditworthiness has changed to your detriment, not because rates have changed. For vehicule 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, if your credit card interest rate was 10% before the events and subsequently the credit card company has notified you that the rate will increase, this is an increase of out-of-pocket costs. Any increase of out-of-pocket costs will 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.

What can credit damage measurement do for me?
If you are a victim of someone else’s action and the damage is measureable, then it can be paid for either by the wrongdoer or their insurer.

Can you help me find a local lawyer?
The simple answer is that we cannot help you find a lawyer. The list which follows is only meant to provide some resources for you to help you find a qualified attorney. Check with your State Bar Association, and your County Bar Association. Explain that you are seeking a litigator. You might consider asking for bar members who are also members of the Litigation Section. Not doing so may cause you to be directed to a general practitioner, instead of a litigation specialist. Other organizations you might contact are: