2. Beware of what lies down the track!

3. It might be your Client!

5. CCCS is a nonprofit mission-driven 501 (C)(3) educational organization dedicated to providing consumer health through financial education We are the largest Virginia nonprofit credit counseling agency in the state of Virginia We are the only credit counseling agency in the country that enjoys a national BBB membership

6. Who Are We?

7. ❖ Former Vice President of Bank of America ❖ Oversees 43 offices in 10 states ❖ Over 25 years of experience in the financial sector Ann Estes Vice President of Counseling and Delivery Services

8. ❖ Former President and CEO of Second Bank & Trust (now StellarOne) ❖ Former Director and Chairman of Community Bankers Bank ❖ Former member of Board of VBA Chris Honenberger President and CEO

9. June’s Story

10. See more on June and other ClearPoint clients at www.repaydebt.org

11. Why ClearPoint? Why Now?

12. SCENARIO Claudia and Cliff Client

13. Claude & Clifford Client Bankers as well as Financial Planners are seeing clients who: Previously had a line of credit in place to use for home improvement, emergency use and contribute regularly to 401. These clients have even increased the size of their HELOC and often have drawn the entire availability against the line. Today, they often need to draw against the line for emergency purposes (loss job/reduction of income/under-employment). A review of the loan application reflects an unacceptable debt to income level, 8 credit cards with high balances, as well as a declining credit score. DANGER – THEY CONSIDER 401s as a “pool of available funds!”

14. So – What are we seeing?

15. 15 Let’s Compare... What Does The Typical Credit Counseling Client Look Like Today Compared To Yesterday?

16. 20052009 Low to moderate income College Graduate: 13% Single: 55% vs. Married: 45% Female: 63% vs. Male: 37% 8 Credit Cards/maxed, averaging $18,000 outstanding debt Average Mortgage: $131,000 Average Car Loan(s): $20,000 1 out of every 12 people in the US have at least 1 payday loan. Moderate/middle/upper income College Graduate: 28% Single: 52% vs. Married: 48% Female: 68% vs. Male: 32% 10 Credit Cards/maxed, average $22,700 outstanding debt Average Mortgage: $190,100 Average Car Loan(s): $30,295 1 out of every 8 people in the US have at least 1 payday loan.

17. 17 Clouds on the Horizon? Jan 2007 - Jan 2009 Counseling Solutions

18. 2009 January Counseling Sessions CREDIT COUNSELING 5141 *INCREASE OVER 2008 12% INCREASE * TOTAL COUNSELING 7705 19% INCREASE *

19. 19 Your Customer at Risk will not ask “Is it Coast Guard Approved”?

20. Do you know who your client is turning to for help?

21. Even highly educated clients are turning to: ‣ Payday lenders ‣ Finance / Rent to own companies ‣ Prepaid / Preapproved credit scams ‣ Debt settlement companies ‣ Foreclosure ‣ Bankruptcy

22. Nancy’s Story

23. See more on Nancy and other ClearPoint clients at www.repaydebt.org

24. Thank You!