First, I'd get rid of the damsel. These are pretty little fish that many people start with; then they discover what little monsters they are. Most damsels only belong in in a tank with fish that will eat them, IMO.
Second, a pic would really help; the fin could be a wound, bacterial or fungal. If you can't do a pic; describe the wound. Oozing? Fuzzy or cottony? Getting worse? etc.