Credit Damage: Getting Compensated for Your Loss
Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured - tangible goods and services. But, what happens when the victim has lost considerable time from work, the family bank is broke and monthly payments on mortgages, car loans and credit cards payments are missed? Regardless of the haggling between lawyers and insurance companies, it's the credit victim who ends up having to live with a bad credit rating.
Today, there are legally accepted means for measuring loss of credit through the procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards when the damage is not self-inflicted. Previously, both judge and jury, and especially the insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage.
However, in case after case, victims of credit damage who use the CDM method are getting compensation for credit loss. Many factors are changing the old mindset including credit bureau technology improvements, the application of the Fair Credit Reporting Act (FCRA), risk scoring sophistication, and the development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably.
Credit Ratings and Recovery
The impact of a bad credit rating is much more significant than most people think. Consider what poorly rated consumers face when they want to lease or buy vehicles, obtain credit cards, buy or lease or refinance their residence. In most cases, it's an easy decision for the creditor: the credit application is simply turned down or the borrower is charged a much higher down payment ? maybe thousands of dollars more with monthly payments that are typically several hundred dollars more.
"A person with bad credit is viewed with suspicion and is charged significantly more for future extension of credit because the lender feels the need to protect against a greater risk or default," says Tom Key, a civil litigator practicing in Tustin, CA.
"Over the years I have heard reports of financial damages from clients who have been wrongfully terminated, defrauded, injured in an accident or suffered losses from breach of contract," Key says. "These victims were especially distraught over the fact that their prime credit reputation, carefully nurtured for years, is destroyed overnight. It seemed to me that there must be a way to compensate victims for that type of loss."
Key has witnessed the reactions of many jurors who failed to award a victim of credit damage their rightful compensation simply because they could not quantify the damages. "Jurors want a specific loss that they can count, hold and see," says Key. "Their reasoning is that they need to know that it is genuine. They have a tough time awarding damages based on sympathy. In order for them to confirm authenticity of a claim, they want to see its quantification."
Measuring Loss of Creditworthiness
Assuring authenticity has been a sticky situation when it concerns measuring out-of-pocket loss for victims of credit damage - until now. Attorneys who represent victims of credit damage are now utilizing the Credit Damage Measurement method to recover out-of-pocket losses for their clients.
"CDM measures the actual out-of-pocket dollars reasonably expected from loss of creditworthiness, which includes higher down payments, higher points and costs on loans, higher interest rates, higher monthly payments, or outright denial of credit," says Key. "In addition, the CDM method also calculates the rates, costs and other terms applicable to the resulting credit rating by lenders and projects the results over the relevant number of years for the types of loans the client is likely to seek."
Key continues, "For example, if a client's credit was near perfect before a triggering event, and is subsequently damaged by the event, the CDM procedure can illustrate before and after analyses, calculating the cost of the same loans with the two different credit reports, Pre- injury credit compared to Post-injury credit." In many cases, CDM clients have already realized significant compensation. In one such case CDM was instrumental in recovering $56,000 for damaged credit reputation. "That calculation is the difference between what refinancing a $140,000 loan would have cost my client with their prior rating, and what it will cost them out-of-pocket with their damaged credit rating -measured over a seven-year period."
Isolated Compensation vs. Repeatable Compensation
The CDM method of measuring intangible credit loss is increasingly becoming the basis of recovery for victims of credit damage. It's changing the way judges and juries measure recoverable out-of-pocket loss, and then can compensate for loss of credit expectancy. Certainly there are still some skeptics, mostly defendants. Technically, credit damage measurement is intangible. However, CDM has proven an objective and practical procedure to calculate out-of-pocket damage for companies or families to compensate for their credit damage.
"To have this kind of measurement is an exciting complexity in our society," says Key. "CDM is very understandable and a rather simple way to come to a conclusion of loss for the victim. If you understand the math and are an expert at reading credit reports, the calculations and recovery are undeniable. It's a method of turning isolated compensation into repeatable compensation. It's changing the way jurors rule on these damaging cases. Because of this method, victims of credit damage can be more fairly and more completely compensated for out-of-pocket damage."
Georg Finder, president of CM Financial Services of Fullerton, California, wrote and presents the first State Bar accepted continuing legal education seminar on credit reports and credit damage. He can be reached at gfinder@creditdamage.com (714) 441-0900 or at http://www.creditdamage.com
 Google News Updated : Thu, 24 Jul 2008 06:51:44 GMT Discovery may boost statin safety - BBC News
BBC News - Scientists have pinpointed a gene mutation as a major cause of a rare side effect of the cholesterol-lowering drugs statins. They hope the discovery could lead to a simple test to identify patients at increased risk of myopathy - severe muscle pain and ... Gene May Predict Cholesterol-Lowering Drug Risk, Study Says Genetic Cause of Statin-Related Muscle Pain Found Publ.Date : Wed, 23 Jul 2008 23:14:24 GMT Karadzic lived the good life with wine, song - Reuters
Reuters - By Ivana Sekularac BELGRADE (Reuters) - Radovan Karadzic lived the good life while hiding from justice for 11 years: he watched his diet, fell in love and hung out in a small bar where hardliners gathered to sing about his wartime exploits. Video: Karadzic's arrest sparks clashes - 23 Jul 08 Karadzic's secret life enthralls his fellow Serbs Publ.Date : Thu, 24 Jul 2008 04:05:33 GMT Rapper 50 Cent sues Taco Bell over ad - New York Daily News
New York Daily News - BY THOMAS ZAMBITO The rapper - real name Curtis Jackson - is suing the fast-food chain for using his hip-hop persona to tout its tacos. 50 Cent sues Taco Bell over ad campaign Rapper 50 Cent says Taco Bell stole his endorsement Publ.Date : Thu, 24 Jul 2008 06:15:09 GMT Christian Bale's lady sidekick: Sibi Bale - Los Angeles Times
Los Angeles Times - Like the Dark Knight/Bruce Wayne, Christian Bale is a real-life man of mystery. Averse to personal publicity, he is well-known for not wanting to discuss his private life. Christian Bale, Wife "Solid" at Knight's Spain Premiere Bale's family feud led to scuffle Publ.Date : Thu, 24 Jul 2008 02:10:31 GMT Zimbabwe Parties May Sign Unity Deal Soon, Business Day Reports - Bloomberg
Bloomberg - By Carli Lourens July 24 (Bloomberg) -- Zimbabwe's ruling and opposition parties may sign a power-sharing agreement soon as they have already agreed on a wide range of issues, Business Day reported, citing people it didn't identify. Fearsome Zimbabwe militias are afraid Delayed Zimbabwe Power-Sharing Talks Seen Beginning Thursday Publ.Date : Thu, 24 Jul 2008 06:23:06 GMT Favre's heir? With backing from mates, Rodgers waits patiently - USA Today
USA Today - By Matt Ludtke, AP By Larry Weisman, USA TODAY He no longer sounds like a retired player after seemingly passing on the opportunity to lead a talent-laden Packers squad. Video: The Rift Between Favre and the Packers Finding new home for Brett Favre won't be easy Publ.Date : Thu, 24 Jul 2008 02:06:18 GMT Billionaires Back Antismoking Effort - New York Times
New York Times - Bill Gates and New York Mayor Michael R. Bloomberg announced their antismoking initiative on Wednesday in New York. By DONALD G. MCNEIL JR Bill Gates and Mayor Michael R. Bloomberg announced on Wednesday that they would spend $500 million to stop ... Video: Gates, Bloomberg Pool Riches to Fight Smoking The $500 million war on smoking Publ.Date : Thu, 24 Jul 2008 06:23:48 GMT RSS For Web Pages |
PARLOT::Ebooks, Scripts,
Websites, and more... Bank robbery has grown to become a huge problem in... Read More Anywhere you go online nowadays, you will see a multitude... Read More FACTA stands for Fair and Accurate Credit Transaction Act. FACTA... Read More Having credit education is like knowing how to read. It... Read More In the twenty-first century, there are few documents that have... Read More You've probably heard the term credit scoring. You may have... Read More A credit card allows you to buy things even though... Read More Chances are you've gotten your share of offers like this... Read More Here, Cratchet, what do you think you're doing?Uh, er, leaving... Read More If you have never heard of a FICO score before,... Read More Credit card companies want your business. After all, lending money... Read More "Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've... Read More Owning a credit card can be quite an advantage. Whether... Read More What is a balance transfer ? A balance transfer can... Read More How many of you bank, shop, or transact other business... Read More To repair your bad credit does not necessarily mean that... Read More Reach into your wallet or purse, pull out a card,... Read More Help! I've Been Turned DownYou received an envelope in the... Read More Imagine opening your credit card statement one morning and discovering... Read More 1. Choosing A new credit cardThere are many reasons for... Read More It's the number one complaint from consumers and it only... Read More Your credit report--a type of consumer report--contains information about where... Read More Have you ever wonder about how to get good credit... Read More In industrialized nations, going into debt starts early. It's easy... Read More Your credit is the most important thing you have other... Read More
Adsense
websites
Bank Robbery Growing In U.S.
Finding and Applying for the Right Credit Card Offer Online
Why Does FACTA Matter to Me?
Credit Education
Credit Report ? Check Yours Regularly - and for Free
Credit Scoring: What You Dont Know Can Hurt You
What is a Credit Card?
Bad Credit Credit Cards
The Ghost of Expected Surprises
Credit Reports ? Why Your Credit Score is Important
Credit Card Incentives
Credit Repair Scams
Credit Cards - A Blessing or a Curse?
Credit Card Balance Transfers Explained
Simple Identity Theft Protection
To Repair Credit Is No longer Satisfactory - Learn How To Earn A Millionaires Credit In 30 Days...
Your Guide On Choosing a Credit Card To Suit You
4 Steps You Can Take If Your Online Credit Card Application Has Been Refused
10 Tips To Prevent Credit Card Fraud
Choosing A New Credit Card
Shoppers Beware - Tis The Season
How to Dispute Credit Report Errors
Triple AAA in 30 Days
Credit Trap: What They Dont Tell You About Credit Cards In College
Why Is It important!
Affordable and Reliable Web Hosting Starting at $4.49/Month
Save Money and Lower your Payments by Improving or Repairing Your Credit
Having a better credit score not only represents easier access... Read More
All Is Fair In Love, War, and, Your Credit Report - At Least It Should Be! Understanding the FCRA
Fact: Over 150 million Americans have credit report with the... Read More
Identity Theft ? Monitor Your Credit Report
The recent security breach at credit card processor CardSystems Solutions... Read More
Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards
Secured Credit Card is similar to a prepaid credit card... Read More
Credit and Banking Money Saving Services
The first rule when applying for banking and credit services... Read More
Low Interest Credit Cards Have Many Advantages
When credit cards are used wisely they can be very... Read More
Balance Transfers Introduction
Credit card balance transfer involves using a credit... Read More
Building A Credit Report Lenders Will Love You For
Will lenders really love you for having a good credit... Read More
Bailiffs & Council Tax - Knowing What To Do
This article is about bailiffs who may call trying to... Read More
What is the Check 21 Act?
Check 21 is the common name for the Check Clearing... Read More
Credit Repair Myths and Facts
There are no secrets to repairing your credit. Many shady... Read More
Your Consumer Rights
If you have ever fallen behind on your debts you... Read More
Credit Help for Real Estate Financing: Five Categories of Your Credit Score
1. Payment History -- 35%The number of accounts paid as... Read More
Making Sense of the Information in Your Credit Report
If you've ever applied for a credit card or loan,... Read More
How Healthy Is Your Credit
There's only one way to discover the "health" of your... Read More
Repairing Your Credit Score and Clearing Derogatory Marks on Your Credit Report
Raising your credit score can be a fairly simple and... Read More
Types of Credit Cards
There are a whole variety of different types of credit... Read More
How Does a Creditor Determine Whether to Grant You Credit?
Credit 101How does a creditor determine whether to grant you... Read More
Credit Damage: Getting Compensated for Your Loss
Until recently lawyers for victims of credit damage had little... Read More
Credit Score: The Brightest Feather In Your Financial Cap
Credit scores are the most important aspect that determines your... Read More
Useful Tips on Borrowing Money
Here are some useful tips on borrowing money. Borrowing money... Read More
FREE Credit Report Offer - Careful, It Might Carry Hidden Charges
FREE credit checks or free credit reports. What are they... Read More
Credit Cards - The Basics
How Lenders Operate ? And How They'll Make a Tidy... Read More
It Takes Credit To Build Credit
Using a credit card wisely is an important step in... Read More
Searching For A Low Interest Credit Card?
These days, people need to very carefully consider what type... Read More
Credit |