When researching options for hiring an expert for your (FCRA or FDCPA case, credit damage, breach of contract, credit slander, credit fraud, negligence, unfair trade practices etc.) the first criteria you should consider is EXPERIENCE. Not case experience, industry experience.
There are many different credit experts with varying degrees of experience. Hiring an expert that has never worked in the credit industry may get you through discovery but if the case goes further an unqualified expert can jeopardize your case.
One reason so many self-proclaimed credit experts are successful is the fact that most credit related cases never reach trial. Settlement is typical with credit claims and many times the expert’s lack of qualifications is exposed during deposition. By this point the expert has submitted his report and his retainer has been exhausted.
A credit expert with industry experience should include the following qualifications.
1. Credit Bureau experience. A background working at one of the 3 major credit reporting agencies (Equifax, Experian and TransUnion.) A credit expert should have firsthand experience with how credit data is collected, maintained, and sold as well as the bureaus practices and procedures regarding dispute resolution and their requirements under the FCRA.
2. Credit Scoring experience. While all credit reporting agencies sell credit scores, the scoring company that is used by the vast majority of banks and credit grantors, is FICO (formerly Fair Isaac and Company.) A credit expert should possess work experience regarding how credit scores measure consumer credit risk and how they impact a creditors decisions to grant credit, increase or decrease interest rates on existing accounts, how they impact insurance rates and how to quantify adverse actions and lower credit scores with actual damages vs. perceived damages.
Red Flags to consider when choosing a credit expert witness.
- Your expert has never worked in the credit industry.
- Your expert works for, or owns a credit repair company.
- Your expert’s only credit experience is as a mortgage broker.
- Your expert’s only credit experience is as a banker.
- Your expert is, or was a debt counselor.