Lawyers routinely hear complaints from clients who have had their credit cards canceled, are charged higher loan fees, are facing foreclosure or are filing for bankruptcy because the personal injury they experienced resulted in loss of income and thus damaged credit scores. Yet, most lawyers rarely include credit reputation damage in their damage demand, even when the evidence is readily available.
This view is slowly changing. Individual credit reports and scores are being made more readily available where previously they were shrouded in relative secrecy. Defense attorneys had used the “speculative” argument against credit damages, but as more courts allow awards for other difficult to calculate injures (i.e., emotional distress, loss of consortium), credit reputation damage is becoming more acceptable. The current economic downturn that has affected millions of Americans has also brought credit and all its nuances to the forefront.
A serious car accident (and the medical bills), fraud, construction defect, wrongful termination, insurance rescission – there are many ways clients can experience loss by the actions of a third party. However successful an attorney is in replenishing a client’s bank account through settlement or trial, the efforts will not resolve an invisible injury: damage to credit reputation.
Loss of credit reputation due to a third party is considered a form of “special injury.” Attorneys can use quantifiable measurements to show compensable damage for loss of credit reputation and receive compensation for their client for this damage.

Credit damage occurs when negative information appears on a credit report or other credit file that causes an individual or business to lose access to credit that was available prior to the damage. Credit reputation damage involves increased out-of-pocket costs, loss of credit capacity and loss of credit expectancy because of third-party actions that cause negative information to appear on a client’s credit report. When personal injuries or other wrongful acts force people to default on their credit obligations, they suffer financial harm.

Credit reputation damage, as a measurable form of special injury, began receiving court recognition in the mid-1990s, Bell v. May Dep’t Stores Co., 6 S.W.3d 871, 876 (Mo.1999); Nazeri v. Missouri Valley College, 860 S.W.2d 303, 316 (Mo.1993) and Bauer v Red Eagle Realty, although courts first recognized this form of damage in 1912, Simonoff v. Jas H. Goodman & Co. Bank, 18 Cal.App.5 (1912).

Introducing a Credit Damage Demand in a Lawsuit

Proper investigation to determine the possibility of a claim for credit damages requires exploration of credit damage factors during the intake interview or in responses to interrogatories. Ask about loans, credit cards or business guarantees. Has the client been contacted by bill collectors, facing bankruptcy, foreclosure or repossessions? If it appears that the credit damage is not self-inflicted but is the result of third-party misconduct, advise the client to save all monthly statements, collection demands, rate adjustment letters–any items that could prove damage.

Attorneys must explain to their clients why they are asking about such sensitive, seemingly personal, information. For many, credit problems are embarrassing. Attorneys must make clients comfortable enough so they provide the information needed to determine if credit damage has occurred.

Ask your client to request a “subscriber credit report”–usually available from a mortgage lender. These offer the most thorough snapshot of an individual’s creditworthiness. The consumer versions available online do not offer the depth of information and are not accepted by creditors when making credit decisions. Prior to making a damage demand to the defense, request another report, especially if more than 30 days have passed since the last credit check. Much can change. Attorneys will want the latest report when determining damages.

These credit documents are essential in establishing the client’s pre- and post-injury credit worthiness.

Establishing Monetary Value

Common forms of credit reputation damage are identified as an increase in credit interest rates, loss of existing credit accounts, denial of credit that would have lowered the cost of an existing loan (i.e., refinancing a mortgage) or higher interest charges for future purchases. As a result of those increased costs, debt service becomes more expensive. When debt service becomes more expensive, loss of credit capacity suffers as the injured person loses the ability to continue to use credit in the way before the damage to credit occurred.

The damage is identified as the difference between pre-injury and post injury costs. Say an injured party had a credit card limit of $100,000. After the injury occurred, the credit limit is lowered to $20,000. The credit capacity of the injured party was decreased by $80,000.

The ability to borrow against the value of real property is also affected by credit reputation damage. Prior to injury, for example, an injured party could borrow up to 90 percent of the value of the property. After the injury occurred, the amount available was reduced to 70 percent of the value. The amount of money that could be borrowed was reduced. Additionally, when credit is damaged, the interest rate increases as well, so not only was the amount of credit available reduced, but also the cost of borrowing that amount increased, making it more expensive to borrow against the value of the real property. Credit capacity was decreased by the 20 percent plus the property owner experienced increased borrowing costs.

Prior to injury, a person with excellent credit can often purchase a new car with little or no down payment. After an injury and damage to credit, that same person might have to make a down payment of 15 percent or more of the value of the car and be subject to a higher interest rate on the balance due. Thus, the amount of credit available decreases and the cost to manage the debt increases.

In the unlikely event that new credit can be obtained after credit damage occurs, the amount will certainly be less than would have been the case before credit was damaged with higher interest rates and monthly payments.

Types of Cases

Just about any type of serious personal injury case may have credit reputation consequences, especially where there is health insurance rescission or balance billing. Victims of credit reputation damage also include real estate buyers and sellers, divorcing couples, borrowers, homeowners with breach of contract, construction defects or bad faith claims, workers suing for wrongful dismissal, legal or medical malpractice and fraud victims.

Insurers are a target of credit damage claims when the carriers fail to pay medical bills as stipulated in insurance policies and these past due bills harm the policyholder’s credit rating. In an insurance breach of contract case Thomas v Workmans Insurance (Los Angeles County Superior Court, 2002), the plaintiff sought relief from a $270,000 judgment entered against him due to an insurance company’s failure to perform. On appeal, the judgment was reassigned to the insurance company. The court found in favor of the plaintiff for $70,000 including credit damage.

In a construction defect case, Alana Brown, et al., v Prometheus Real Estate Group, Inc., et al. (No. 34-2008-00000237, Calif. Super., Sacramento Co., 2009), 39 of 40 condominium owners found mold or water damage in their homes due to faulty construction and had to vacate their property. The condominium owners sued the builder. Four owners claimed, in part, that the construction defects and the required relocation expenses impaired their credit. The arbitrator agreed, awarding three of the four owners $25,000 each for credit loss damage. The fourth claimant did not have to vacate and was otherwise compensated.

Expect the defense to continue to use the “subjective” argument against credit damage measurement. The key to a successful argument for credit reputation damage and to maximize damage value is to present a thorough analysis of the before and after credit picture of the injured party followed by an expert opinion providing a rationale for the monetary costs of the damage. With more courts accepting credit reputation damage as a special injury, this “invisible” damage can become a sizable portion of an injured party’s damage award.

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Georg Finder, an Orange County Independent Credit Evaluator (ICE), is an expert on credit reporting violations and credit damage measurement. He has more than 15 years of experience evaluating credit reports and appearing as an expert witness for both plaintiff and defense.  Finder has authored numerous books including his upcoming, Credit Reputation Damage Compensation Success (2011). He is a MCLE provider on credit report issues and credit reputation damage compensation.

Georg Finder: creditdamageexpert@gmail.com
Credit Damage and Divorce - Stop Credit Damage

Creditworthiness is determined by a creditor’s underwriting department which determines the probability that the credit applicant will meet debt obligations in a timely fashion. Someone who is deemed likely to satisfy debt obligations is creditworthy while someone who is more likely to default is a greater credit risk and not creditworthy.

Thus someone who is considered creditworthy prior to injury to credit by the wrongful act of another and not creditworthy after occurrence of the injury has suffered credit damage. Such damage will result in either diminished credit capacity, diminished credit expectancy, or both. Credit capacity concerns the decrease of available credit and the inability to use credit at the same interest rate, thus at a greater cost.Credit expectancy is concerned with the performance based expectation of obtaining credit to maintain an attained lifestyle or to accomplish the life style to which one aspires. In other words, credit expectancy can be seen as a window of opportunity to advance goals. When credit is injured, that window of opportunity is slammed shut.

Expectancy is typical in human life. A college student expects to obtain future employment when a degree is attained. A medical student expects to become a doctor. Or a law student expects to be a lawyer. Similarly a person with a history of creditworthiness expects to be able to use credit in new and additional ways with increased credit availability and at a lower cost. This is credit expectancy.

When a pattern of credit use is interfered with that person’s expectation of continued credit or greater credit might be damaged. One illustration is the real estate investor who has a history of purchasing six properties per year for improvement and resale at a profit. Credit problems occur and the investor finds it impossible to obtain new credit to finance the purchases of property. The reasonable and foreseeable expectation of obtaining credit to finance a future enterprise has been dashed and the investor has been damaged accordingly. The window of opportunity has been broken. When the loss of credit occurs as the result of the wrongful act of another, credit damage has occurred in the form of loss of credit expectancy.

Other reasonable expectations which a person with a developing history of creditworthiness might envisage is the purchase of a first or new home, a new car, or credit cards with higher limits and lower interest rates. When creditworthiness is diminished and the window of opportunity is closed, those expectancies will be dashed and unattainable. That is the crux of damages for loss of credit expectancy.

It is likely that when credit damage for loss of expectancy is alleged the objection will be made that credit expectancy, something to occur in the future, is speculative. That issue can be met and overcome in the same manner that a similar objection to damages for diminished earning capacity is met with the testimony of the injured party and testimony of a qualified expert. The person whose credit has been damaged can testify about plans to utilize credit. Expert testimony concerning statistical evidence showing how credit is used by people similarly situated to the injured person is admissible.

To successfully recover credit damages for the loss of credit expectancy requires the services of a qualified expert to address the economic loss for damage to expectancy. Georg Finder is such an expert who has qualified as an expert witness in State and Federal courts.

Simple tool designed for persons or businesses who believe their credit score may have been damaged at no fault of their own.

FULLERTON, Calif. (NOV. 7, 2010) – Georg Finder, the leading expert in assessing loss of credit reputation for a person or business, today announces an online evaluation tool to quickly establish a credit damage level for a person or entity. The tool is designed for persons or businesses who believe they may have been injured at no fault of their own.

“The Credit Damage Score is the first tool available to help answer two nagging questions becoming more prevalent as credit scores impact more aspects of our lives. Was I injured? And, Do I have a case?” Finder said. “This tool can indicate a probability that compensation is deserved.”

The tool, available at www.creditdamagescore.com, presents visitors with a simple set of questions in areas such as lost wages or commissions, credit cards, collection accounts, mortgage and insurance.

“Thanks to marketing campaigns, everyone knows the term ‘credit score’; however it is misleading because a person’s credit score can be marred by actions out of their control,” Georg Finder said. “It makes sense then that there also is a Credit Damage Score, a number to understand just how badly your credit reputation may have been injured by the actions of another party.

“With the proper documentation, you may be entitled to compensation,” Finder said. “The Credit Damage Score helps an attorney recognize the probability of getting paid for actual loss of credit reputation.”

Credit damage is commonly overlooked in personal injury damage demands, or situations where a person’s credit reputation may be compromised or damaged through no fault of their own. For there to be payment for damages, the responsible party must be identified, and the damages measured and/or monetized.

At the start of www.creditdamagescore.com, the visitor is presented a table explaining scoring. A credit damage score of zero to five is marginal; 6 to 10, very likely or soon will be significant credit damage; 11 to 15, definite actual damage to measure; and for scores of 16 and above, the site recommends retaining a credit damage expert to include credit damage in a legal damage demand.

A lawyer will use the expert witness to present a credit damage measurement report to show how, and how much, the credit was damaged so a judge, a jury or an attorney can recognize the damage.

“Just as a doctor might provide an expert explanation of a medical situation, a credit damage expert can provide an expert credit damage assessment valuable in court situations,” Finder said.

“I sometimes refer to credit damage as the invisible injury in cases such as divorce; personal injury with at least two months’ loss of income; fraud (including, but not limited to, identity theft); breach of contract (including loss of health insurance); malpractice; credit report file merge; credit report errors; bill collector abuse; wrongful job loss; or bad faith insurance,” he said.

The credit record does not have to be perfect before the injury. The assessment must show a client’s credit reputation has enough sufficient documented change of credit status inflicted by a third party to cause increased out-of-pocket costs; loss of credit capacity; or loss of credit expectancy.

Damages for loss of credit reputation have been awarded dating back to 1995. See Mr. Finder’s Judicial List

Georg Finder
2501 East Chapman Ave., Suite 100
Fullerton, CA 92831
(714) 441-0900
creditdamageexpert@gmail.com
www.creditdamageexpert.com
www.stopcreditdamage.com

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Article reprint from: ORANGE COUNTY LAWYER MAGAZINE
Fullerton, CA – July 26, 2002

Damages to credit-worthiness due to a third party are now a measurable and compensable form of “special” injury. This financial damage can be quantified with the Credit Damage Measurement (CDM) Report developed by Georg Finder, an expert witness on credit damage and Certified Credit Evaluator. “All of us have had clients who said their credit is ruined,” says attorney Thomas George Key who has used this service, “With an expert who has a method of liquidating the damages, it is no longer speculative.”

Damages to credit-worthiness alone can often reach six figures on what may otherwise be a small claim. Credit damage has proven collectable in several cases even where credit was the only damage. One client received a $30,000.00 award due to real estate fraud. A real estate investor received $113,000.00 due to mortgage company errors. Overlooking credit damage can be serious negligence and missed opportunity for lawyers, who in a few minutes can understand the theory and its’ practical application.

According to attorney Key, “Credit damages have been mentioned in appellate cases and awards given over speculative objections. Loss of credit-worthiness can be quantified to a number. As attorneys, we have an obligation to present these damages.”
Victims of credit damage include divorcing couples, borrowers with creditor payment processing errors, breach of contract – especially with construction defects or bad faith situations, wrongful dismissal, personal injury/medical malpractice, and other causes of civil action.

“All staff involved in litigation or case management should be able to recognize signs of credit damage,” says Finder, author of CLE seminars on credit damage.

VERDICTS & SETTLEMENTS, LA/SF Daily Journal (7/26/02) Fraud case. $40,000 settlement increased to $170,000 using Georg Finder as technical expert for credit damage. (Case #ECO31647, LA Superior Court, Burbank. Date: 6/19/02

About the Author: Georg Finder, of Fullerton, California, wrote and co-presents the first State Bar accepted MCLE seminars on credit reports and credit damage. He can be reached at (714) 441-0900 or at Web site: www.creditdamageexpert.com where a case qualifying checklist may be obtained.

Let’s look at situations where it would be inappropriate to include a claim for economic damage. There are two important scenarios. The first instance is where credit damage is not the result of the wrongful action of another. The second is where economic damage may exist, but it is too small to make a significant impact on the value of a case.

Self-inflicted economic damage is readily apparent in most cases. Credit that is damaged as the result of poor budgeting or poor planning is self-inflicted. Inability to meet credit obligations because of overextending is self-inflicted. It is true, the credit industry deluges us with sweet sounding offers for credit. It is not the fault of the industry that we accept those offers and then find ourselves in unsolvable debt.

The more complicated scenario occurs when the wrongful act of another causes injuries. An apparent example is the automobile accident where the injured person is unable to work and loses income. Economic damages appear certain on the face of it. It is important in this situation to ascertain credit history. If the history shows that prior to the injury credit obligations were not being timely met, economic damage could not be the fault of another; in this case it was self-inflicted.

The second scenario where it may be unwise to seek economic damage is where the impact on credit is small. Georg Finder, the preeminent expert in the field, writes, “My policy is to accept any case only if I affect the value of fair compensation by at least $30,000.” The same automobile accident occurred. Physical injuries were sufficiently minimal that missed work and lost wages were relatively small. There was some difficulty meeting credit obligations, and agreements were made with creditors to temporarily make payments covering only interest. After returning to work, credit obligations were again made. In this case there would be little, if any, measurable credit damage.

Another scenario is that of the victim who has little credit history and credit damages are minimal. A judgement call has to be made to determine whether to pursue a claim. If it appears that the cost of the expert who will determine the value of the damages will be greater than the damages themselves it is probably prudent to forego the claim. Georg Finder will not accept a case if he cannot improve its value by $30,000. That alone is a consideration in determining whether to pursue a smaller credit damage claim.

The injured person need not have perfect credit in order to qualify for credit damages. If it can be documented that the person has credit, although less than perfect, and that credit is diminished as a result of the wrong of another, a case for credit damages can be made. The critical inquiry is whether the injured person’s credit status was changed detrimentally as the result of the wrongful act of another. An injured person might have substantial credit damages even without perfect credit at the time of injury.

If you want to know more about whether to pursue a economic damage claim contact Georg Finder

Your client has just been sued. One of the claims is for loss of credit reputation – a damage where plaintiffs assert their credit reputation has been harmed by an alleged wrongful act of a third party. Damage to one’s credit reputation can mean a higher mortgage interest rate or a denial of a business line of credit. With economic conditions leaving the credit of many individuals and businesses in ruins, more and more plaintiffs’ counsel are including credit reputation damage also known as “economic damage” in their pleadings.

The first judicial recognition of economic damage as a compensable damage was in 1912, Simonoff v. Jas H. Goodman & Co. Bank, (1912) 18 Cal.App.5, –12 years after the establishment of the first consumer credit reporting bureau, now known as Credit Bureau, Inc (CBI), the provider of Equifax reports. For decades, however, plaintiffs’ lawyers found little success in trying to measure the about of economic damage experienced by clients in personal injury, wrongful dismissal, fraud and breach of contract cases. Not until the mid-1990s did successful measuring for economic damage find its way into the courtroom.

Areas most often cited in court as impacted by loss of credit reputation include:

–employment/hiring and job promotion,
–insurance coverage (business, personal, property, health)
–credit cards (secured or unsecured, credit capacity, credit limits)
–vehicles purchase/leased on credit
–real estate purchase/lease
–banking services (denial of savings or checking account privileges, increased fees)

One of the problematic issues for plaintiffs when determining economic damage measurement (and a key defense argument) is that the most compensable and measurable damage may happen in the future. This is frequently the basis of the “speculation” objection raised by defense: “Why is the defendant being asked to pay for damages that have not happened?”

Economic Damage, is often the direct result of lost income and so is measurable. Compensation can be determined for continuance of a lifestyle prior to damage. Credit damage or economic damage measurement involves examining how poor credit will result in future higher interest rates, denied credit, denial of insurance, higher bank fees or possibly a pass over for a new job or promotion. Plaintiff’s counsel have devised ways to use standard credit industry forms, notices and credit reports to successfully reveal damages and obtain restitution to pre-injury status. The awards can be significant.

For example, in Squirty’s Body Shop v. FinishMaster Corp., (2007, Los Angeles Superior Court,) the two companies had a falling out. As a result, Squirty’s claimed it suffered reputation damage, loss of credit capacity and increased out of pocket costs of more than $50,000. A jury found in favor of the plaintiff in the amount of $297,000.

The Realities of Credit Damage/Economic Damage Defense

There are two basic realities to remember when defending an economic damage claim. The first reality is that neither the defense nor its client is permitted by the Fair Credit Reporting Act (15USC 1681b) to obtain a copy of the plaintiff’s credit report directly from a credit bureau or other authorized credit reporting source. The exception is if the defendant is a collection agency or a direct creditor. This can bind the defense’s hands.

Section 604(f) of the FCRA, as amended by the Consumer Credit Reporting Reform Act of 1996, prohibits any person from using or obtaining a consumer report unless the report is obtained for a purpose for which the consumer report is authorized under Section 604 and the purpose is certified by the user under the requirements of Section 607. The user of a consumer report must certify that the consumer report will be used for a permissible purpose, and for no other purpose. This certification will usually take the form of a contract between the user and the consumer reporting agency.

In Sporn v Home Depot (2004, Orange County, Calif. Superior Court), the plaintiff discovered that the defendant was accessing his credit report repeatedly without permissible purpose in violation of the FCRA. The defendant continued to do so even after agreeing to stop. The court found in favor of the plaintiff for $930,000 damages with $1.4 million in total damages paid.

The second reality is that without the cooperation of the plaintiff’s counsel to provide key documents, including credit reports, the defense will be at a disadvantage in building a case against economic damage. It is up to the defense to convince the plaintiff’s counsel to supply the needed documents. Take the position that the defendant is fully ready to compensate for any claim with a sufficient foundation and appropriate basis for valuation of the economic damage demand(s). Then ask for all documents that provide the foundation for the demand and an explanation of the process used to opine on its value.

An effective defense tactic is to use a “Jujitsu Defense” technique–let the plaintiff expend the time and energy to provide the defense with the information needed to build its defense. Ask for documents that will establish the pre-injury reputation of the plaintiff. It is acceptable to ask for a credit report prior to the alleged injury, as well as a post-alleged injury credit report. This is the defense’s opportunity to obtain the documents necessary to truly evaluate the legitimacy of the claim and to prepare a defense.

Confirm that the credit report is the type reviewed by lenders–a commercial or subscriber credit report–not the “free” credit report available to consumers. Free credit reports or consumer disclosure credit reports are not accepted by lenders and are never used in loan processing or by underwriting departments in credit application processing or evaluation. A current subscriber credit report should reveal credit status back seven years prior to the date of issuance/publication and will reveal creditor or public record remarks regarding the injury. Each report should be tri-merged, including a report from each of the three national credit agencies, Experian, TransUnion and Equifax.

Evaluating Documentation

A standard practice is to ask the plaintiff to provide a basis for the dollar amount for compensation, typically an amount suggested by its expert witness in a report included with the damage demand. These expert reports can be vague on how the compensation valuation opinion was arrived. A poorly prepared report will often refer generally to statutory violations, plaintiff inconvenience or emotional distress, leaving out the monetary specifics.

If the rationale or basis for arriving at the compensation amount is insufficient, the defense should be cautious about showing the plaintiff’s its hand. It is not in the defense’s best interest to tell the plaintiff what is necessary to provide an acceptable foundation for its damage demand.

Telling the plaintiff’s counsel that the documentation is insufficient may lead the plaintiff to find more detailed accounts of the damage. If defense counsel goes so far as to request specific correspondence regarding credit denial, rate increases and cancellation or reduction of credit since the alleged damage occurred, the defense will be assisting the plaintiff in the improvement of the validity of the economic damage claim.

Acceptable documentation that may provide a foundation for a damage demand would typically include a current subscriber credit report, monthly credit card statements from department stores, gasoline companies, MasterCard, American Express, Discover and Visa that have an option for a rate change due to delinquent payments. Know what to look for but don’t be specific in the request.

In one case involving an economic damage claim, the defendant was a local office of a national real estate brokerage. The plaintiff was a homeowner seeking to sell his property prior to foreclosure. The plaintiff sued the local real estate agent/broker for $200,000, alleging breach of contract since the property was not sold prior to the foreclosure’s completion. The plaintiff alleged that due to failure by the real estate agent to prevent the foreclosure, economic damage was inflicted and would cause denial of credit for up to 10 years. The plaintiff cited the necessity of a co-signer to lease a residence, as proof of the damage.

The plaintiff failed to disclose that he had filed and was discharged from Chapter 7 Bankruptcy approximately 16 months prior to filing the credit damage claim. The defense was able to establish that due to the recency of the bankruptcy discharge, the borrower was still in the “recovery/lesson learned” post-bankruptcy period that would typically prevent commercial lenders from considering his application with favorable results even if it accepted the application for underwriting review. Collection accounts and record of recent late payments were also revealed in the current credit report. A time line graphic was presented at trial showing the plaintiff’s credit activities. The credit documentation and time line helped the jurors deny the economic damage award.

Refuting Plaintiff’s Expert Witnesses

As another means of credit reputation damage defense, counsel can question the economic damage credentials and knowledge of the plaintiff’s credit damage expert. Is the expert’s report objective and neutral in language regarding the plaintiff and the effect of the alleged damage? Does the demand for damages have actual basis? In one case, the plaintiff’s expert claimed the plaintiff should be compensated because the stress of the economic damage was keeping her up at night. The jury denied damages for her tossing and turning.

A requisite for a capable economic damage measurement expert is an ability to provide a thorough review and understanding of standard credit report information in context of current marketplace requirements. The expert must have the ability to compare pre-injury charges to post injury charges of the borrower. Plaintiff’s counsel may bring in experts to convince jurors of damages, yet with a little digging on the part of the defense, often times it can be revealed that these experts do not possess the ability to formulate a monetization damage because it is beyond the scope of their expertise.

An economist, for example, can readily provide lifetime earnings projections, but can rarely recognize how extended lost income directly causes loss of credit reputation and measuring it so it may be a compensable damage. Simple recovery of income may replenish a bank account but the damage to reputation caused by late payments, charged off accounts, collection accounts, foreclosure, or bankruptcy is more nuanced. Loan officers, real estate brokers, accountants and banking experts all may have some qualifications in determining whether monetary damage occurred in their particular specialty but cannot typically provide an overall picture of the total damages that allegedly occurred. This gives the defense an opportunity to bring out this ambiguity during cross examination and cast doubt on their assertions.

As economic damage claims become more prevalent, defense attorneys must have a strategy in place to neutralize these claims. Obtaining adequate documentation and undermining the plaintiff’s expert witnesses and reports can go a long way in achieving this goal.

View related Economic/Credit Damage and Identity Theft Videos

The successful objection that economic damages are speculative ended with the experts ability to prove the damage. Among the elements found in credit reports is information provided by creditors concerning the failure of individuals to make timely payments on accounts. These facts are evidence of inflicted credit damage when the failure to make payments is the result of wrongdoing. These adverse remarks will be used by any future creditor in making a determination of creditworthiness or credit capacity. The adverse information found in credit reports will remain in the reports for seven years, a fact which an expert utilizes to calculate credit damages.

To illustrate this we will return to Sandy. Over time Sandy, who claims to have been wrongfully discharged from employment, has become unable to meet credit obligations. Credit card payments have become late. From time to time Sandy’s mortgage payment is not made on time. Car payments are late. All of these events are reported to the credit agencies and provide evidence of the damages resulting from the wrongful discharge. The information provided will make it more difficult for Sandy to qualify for credit when she applies for it, and when credit is provided, it will be for less money and at a higher interest rate. A qualified expert can utilize those facts to calculate damages to present to a judge and jury.

To give yourself the best opportunity to recover economic damages, you should utilize the services of an expert, such as Georg Finder. The expert you retain should be able to calculate economic damages and testify about the elements of a credit report, the significance of those element, how the information in a credit report is used by creditors, and why the existence of economic damage is not improbable.  Economic damage therefore need no longer be relegated to the realm of speculative damages and now can be proven as an element of special damages.