You probably want to avoid making this statement sometime down the road: “Gee, I didn’t know that was possible!”

Use of credit reputation in the form of credit reports has become a fact of life. When credit is damaged, it becomes more costly or entirely unavailable, that constitutes a substantial economic loss and hardship. When credit is injured as the result of the misfeasance or malfeasance of another, special damages for ruined credit are as available as any other form of special damage.

The proven methodology now exists to place a dollar value on that loss and such damages can be extensive. It is absolutely critical, therefore, to conduct the necessary investigation to determine whether there is evidence of credit damage and then to seek damages for those losses in any litigation where evidence supports the claim. Failure to do so may give rise to a claim of professional negligence.

For information on how to make sure you don’t risk a malpractice claim, you can utilize the CreditDamageScoreFinder© , now available at no cost.

Legal malpractice occurs when an attorney commits an error that a competent attorney exercising a reasonable standard of care would not commit. Until recently attorneys have been hamstrung in efforts to seek credit damage compensation because of the difficulty of measuring such damage. Without the ability to prove credit damage, it was not malpractice to fail to seek credit damages.

Since 1995 Georg Finder developed a system to accurately calculate credit damages, judges have permitted plaintiffs to proceed with claims for credit damages over defense objections. Juries have awarded substantial amounts for ruined credit. A reasonable standard of care requires that credit damages must be sought in all appropriate cases. A competent attorney must therefore be careful not to be exposed to the risks of professional malpractice claims by overlooking the potential of credit damage claims.

A tool to aid you in that investigating the likelihood of recoverable credit damage is a downloadable check-list, the Credit Damage Measurement Score, a check list developed by Georg Finder. The check-list covers eight areas of credit and potential credit damage and is available for download at no charge. More important information about credit damage can be found at CreditDamageExpert.com.

Frequently credit damages are only revealed sometime after you are retained and as the case develops. It is therefore crucial that you or your staff monitor the case for potential credit damages, so that potential credit damages will come to your attention in a timely fashion and are included in special damage claims.

You are probably wondering how to determine the potential extent of those damages in a given case. A tool designed to assist you in identifying the potential value of credit damages is the CreditDamageScoreFinder© developed and made available by Georg Finder.

It is absolutely imperative to evaluate the potential value of credit damages so as not to overlook a significant, in some cases the most significant, element of damages in a case. A step by step analysis should be utilized to make sure that nothing is overlooked. To better understand what you will need to assess the viability of your credit damage claim, access the CreditDamageScoreFinder©.

When you look at the 8 areas of inquiry of the CreditDamageScoreFinder©, you will understand what information you will need to evaluate the credit damage aspects of your case. Thus, for example, you will have to obtain information about credit cards, mortgages, vehicles, and lines of credit.

Completing the CreditDamageScoreFinder© requires information about the credit history of your client, ideally during the initial intake interview. It is likely that during the intake interview, using the Credit Damage Measurement Score check-list, you will learn of the credit documents that your client will have to provide you.

It is also critical to obtain a commercial or subscriber credit report available for a small fee from any of the three credit agencies. Commercial credit reports are used by lenders in making determinations about credit availability to an individual and at what cost. They are distinct from the inadequate credit reports readily available at no charge upon request. Without the information contained in the commercial credit report, it is difficult, if not impossible, to see the true picture of credit status. Additionally, the commercial credit report will be one of the tools used by the expert who will calculate the value of the credit damages.

Calculation of credit damages requires the services of an expert in the field. The expert will consult with you regarding the potential value of the case. If the expert determines that there is sufficient value to make credit damages worth pursuing, a variety of services and products will be available, ranging from a detailed report of the value of the credit damages to testifying at trial.

The leading expert is Georg Finder. To learn about the services Finder offers and how to substantiate a claim for credit damages, please go here.

• 0 – 5: Credit damage case is marginal; continue to monitor for more indications of credit damage.
• 6 – 10: Significant credit damage is likely; begin to assemble documents; obtain fresh commercial credit report.
• 11 – 15: There is definite measurable credit damage; contact credit damage expert.
• 16+: Significant credit damage; retain credit damage expert immediately to include credit damages in damage demand.

Understanding the information utilized to obtain the score will help you understand the elements of credit damage.

The CreditDamageScoreFinder© for personal injury and wrongful termination cases calls for information in eight areas:

• Lost Earnings
• A minimum of 6 to 8 weeks of lost wages or equivalent commissions will be necessary in most cases to trigger the likelihood of a credit damage claim.

• Conversion of Funds to Maintain Lifestyle or to Make Payments
• The necessity to prematurely dip into retirement funds, borrow money from friends or relatives, or divert money from cash flow to maintain lifestyle or make payments are all indications that a credit damage claim may be viable.

• Mortgage
• Late payments, denial of a mortgage to purchase property, and denial of an application to refinance are all indicators of credit damages.

• Credit Cards
• Cancellation of a card or cards, increased interest rates, and lower limits all reveal credit damage.

• Financial Relief
• Filing for bankruptcy, discharging debts in bankruptcy, and utilizing the services or a credit counselor can all reveal credit damage.

• Insurance
• If a policy is cancelled, rates are adjusted or renewal is denied demonstrate credit damage.

• Line of Credit
• Refusal of credit or a home equity line, refusal of refinance or upward adjusted interest rates are signs of credit damage.

• Accounts in Collection

The CreditDamageScoreFinder© is a powerful tool to enable you to evaluate the next steps to take in regard to making a claim for credit damage. You will probably want to wait two months from the date of injury, while the elements of credit damage are developing, to utilize the CreditDamageScoreFinder©. Even then a low score may only signify that still more time will be necessary to allow the indicators of credit damage to develop a higher score. On the other hand, bear in mind that even a high score is only indicative of the possibility of substantial credit damage. Only the analysis provided by a credit damage expert can be definitive.

For more information visit the web site of the credit damage expert, Georg Finder.

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

Self-inflicted credit damage is readily apparent in most cases. Credit 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. Credit 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, credit damage could not be the fault of another. The credit damage was self-inflicted.

The second scenario where it may be unwise to seek credit 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.

A tool which is available to assist in determining the value of credit damages is the Case Qualifying Profile made available by Georg Finder. The Profile can be found at www.creditdamage.com/case_profile.html.

If you want to know more about whether to pursue a credit damage claim, please see www.creditdamage.com.

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. To learn about how Georg can assist you, please see http://www.creditdamage.com.

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

As a result of those increased costs debt service becomes more expensive. When debt service becomes more expensive, loss of credit capacity is suffered as the injured person loses the ability to continue to use credit in the way it could be used before the damage to credit occurred.

Three examples illustrate how credit capacity may be damaged.

The first example is the ubiquitous credit card limit. In this example the injured person had a credit card limit of $100,000. After the injury occurred, the credit limit was lowered to $20,000. Thus, the credit capacity of the injured person decreased by $80,000.

The second example involves the ability to borrow against the value of real property. In this example prior to injury the injured person could borrow up to 90% of the value of property. After the injury occurred, the amount available was reduced to 70% of the value. Thus, the amount of money which 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 the cost of borrowing that amount increased, making it more expensive to borrow against the value of the real property. Thus, credit capacity was decreased by the 20% reduction plus the increased cost of borrowing.

The third example involves the purchase of a motor vehicle. In this example prior to injury a person with excellent credit can walk away with a new car paying nothing down. After injury and damage to credit, the same person might have to make a down payment of 15 or 20% 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, a loss of credit capacity.

Additionally, 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. On top of that, higher interest rates and monthly payments will be required. In other words credit won’t be as affordable as it was before the injury, a significant loss of credit capacity. All of the above examples reflect a loss of credit capacity. The amount of credit available will have decreased as a result of the damage to credit. The cost of that credit will have increased, making available credit more expensive as a result of the damage to credit.

Compensation for loss of credit capacity is available and should be sought in any case when the damage to credit is caused by the wrongful act of another. To obtain that compensation requires that a qualified expert be retained. The pioneer and leading expert in the field of compensation for credit damage is Georg Finder. To learn more about what Georg Finder can do to strengthen your case, see http://www.creditdamage.com.

Credit damages may result if a victim suffers any of the following: cancellation of credit, increased borrowing costs, loss of credit capacity, or loss of expectancy. Those adverse events will occur when a person is unable to meet credit obligations and creditors provide negative reports to credit agencies. Prospective creditors will utilize those negative remarks in deciding whether to grant credit at or, if they will grant credit, in what amount and at what interest rate.

A credit score is intended to rate the probability that a borrower will default on a loan. It is based on several factors including payment history, outstanding debt, length of time one has had credit, the number of inquiries on your report, and on the types of credit you currently have. The first two factors are by far the most heavily weighted in calculating a credit score. In Sandy’s case we can infer that, as Sandy becomes unable to meet credit obligations, the payment history will deteriorate and the outstanding debt will increase causing a decreasing credit score.

Over time Sandy’s credit report will contain more negative reports. Sandy can therefore expect that it will be more difficult to obtain credit (loss of credit expectancy), that when credit is available, it will be for less (loss of credit capacity), and the interest rate (cost of credit) will increase. Sandy may also lose credit cards or otherwise existing credit (cancellation of credit).

It almost becomes a matter of common sense that if one’s credit is damaged as the result of the wrongful act of another there should be compensation. The remaining question becomes how much compensation is appropriate. The answer can be determined by someone qualified to analyze a credit report and the negative reports found therein and who understands the implications of a credit score. These are not mere numbers which can be plugged into a calculator to elicit a dollar amount of damages. To reach that figure requires an expert. One expert is Georg Finder, a recognized authority in the field.

The successful objection that credit damages are speculative ended with the experts ability to prove the fact of credit 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 credit damages, you should utilize the services of an expert, such as Georg Finder. The expert you retain should be able to calculate credit 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 credit damage is not improbable. Credit damage therefore need no longer be relegated to the realm of speculative damages and now can be proven as an element of special damages.

To learn more about the kinds of cases where credit damage are available, see http://www.creditdamage.com.

Sandy lost a job of 25 years. All signs point to a wrongful termination and age discrimination. Over the years, because Sandy had a steady income and has maintained excellent credit, always able to make timely payments on a mortgage, the recently purchased new automobile, and credit cards. Having lost employment, Sandy is worried about making those payments and maintaining good credit.

What can you do for Sandy and those in a similar situation? Your client is frightened about the severe economic hardship he or she may face. You want to do everything within your ability to make the client whole. And you are stymied. You know that your client will face future difficulties with credit. The client's credit rating is certain to be damaged as it becomes increasingly difficult to meet credit obligations. Your experience tells you and you have been taught that you have no ability to seek damages for the injury to your client’s credit. You believe that it is not possible to make a special damages claim for harm to credit. You have been left to hope that a jury will consider the pain and suffering associated with credit problems in assessing general damages. You have found it necessary, when negotiating a settlement, to attempt to convince defense counsel that a jury will do just that in support of your settlement demand.

You would be in a much stronger position if you plead credit damages as an element of special damages. If you do, an expected defense objection will be that a claim for credit damages is speculative. Speculative damages are defined as damages that are highly improbable or contingent on the occurrence of a future event. They are speculative when the existence of the damages is uncertain, not the amount, which is subject to proof and the determination of the trier of fact.

• Credit damage is a form of consequential damage according to several courts. One can often look to applicable state law for a partial codification of what constitutes consequential damages. For example in the state of Georgia, Ga.Code Ann. § 51-12-3(b) defines “consequential damages” as “those which are the necessary and connected effect of a tortious act, even though they are to some extent dependent upon other circumstances”). Bohac v. Dept of Agriculture 239 F.3d 1334 (C.A.Fed. 2001).
• Consequential damages may be available depending on what statute the consumer decides to sue under. See Kightlinger v. C.I.R. 1998 WL 712535 U.S.Tax Ct.,1998.