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 Credit Damage Measurement method to recover out-of-pocket losses for their clients. “CDM measures 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, CDM method also calculates rates, costs and other terms applicable to resulting credit rating by lenders and projects results over relevant number of years for types of loans 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 event, CDM procedure can illustrate before and after analyses, calculating cost of same loans with 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 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 basis of recovery for victims of credit damage. It’s changing 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 victim. If you understand math and are an expert at reading credit reports, calculations and recovery are undeniable. It’s a method of turning isolated compensation into repeatable compensation. It’s changing 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.”