Diminished Credit Ratings Lead to Invisible Economic Damages
Credit damage from various forms of injury or litigation can result in costs to consumers in the thousands of dollars. Credit damage can occur in many situations such as serious personal injury causing default on payments, because the person can't work. It can also occur during real estate litigation, from identity theft, breach of contract, contested divorce, partnership disputes, and health insurance rescission.
Each of us has a credit reputation. When credit reputation is damaged, one can expect the loss of ability to get credit for new purchases or higher interest rates for the credit that can be gotten. In divorce cases, abuse of joint credit cards often occurs. The lower earning or unemployed spouse typically suffers, because his or her credit score can drop dramatically.
If you are in that situation, call this type of loss to the attention of your attorney or paralegal before a divorce settlement is prepared. Whether in a divorce or a personal injury case, loss of credit reputation due to a third party's conduct is a form of legal damage that may have significant value. These damages can be quantified, but too often this kind of damage is overlooked by attorneys. Why? The answer is pretty simple. Traditionally, this type of economic damage resulting from an injury was not taught in law schools.
Today, these damages are considered as valid as loss of earnings, medical expenses, and pain and suffering, so be sure your attorney knows about this kind of claim and has considered it in your case. The red flags that can tip you off that you are experiencing damage to your credit reputation are the cancellation of your credit cards, foreclosure, repossession of a vehicle, and increases in credit card fees. As your legal team prepares this aspect of your case, they will ask for personal and sensitive financial information that is essential for case preparation. Don't worry. Everything you tell a legal team is held in confidence.