A Commitment to Community Focus and Outreach by ps94506


									           A Commitment to Community Focus and Outreach

           ANNUAL REPORT        2009

                                         C R E D I T C O U N S E L I N G S O L U T I O N S®

CFS Annual Report 2009.indd i                                                           4/2/10 1:34:51 PM
        A Commitment to Community Focus and Outreach

CFS Annual Report 2009.indd ii                         4/2/10 1:34:52 PM
                                                   T able of Contents

                                                             Table of Contents               1
                                                A Message from the CEO                      2
                                               Growing Our Organization                     4
                                     Increasing Community Involvement                        5
                                                                    Making News             6
                                                                             Funding        7
                                           Profile of the ClearPoint Client                 8
                                                            How We’ve Helped                9
                                                         Board of Directors              10

                                      CLEARPOINT CREDIT COUNSELING SOLUTIONS 2009 ANNUAL REPORT   1

CFS Annual Report 2009.indd Sec1:1                                                        4/2/10 1:34:52 PM
         A Message from the CEO
                                                                                  “A      COMMITMENT                                             TO

                                                                                 ClearPoint Credit Counseling Solutions will
                                                                                 reflect on 2009 as a year of transformation.
                                                                                 With the nation deep in recession, ClearPoint
                                                                                 was challenged to respond to consumers’
                                                                                 evolving needs. Mounting household debt,
                                                                                 an unprecedented housing crisis and rising
                                                                                 unemployment pushed record numbers of
                                                                                 American families to the financial brink. Many
                                                                                 consumers who rely on credit cards saw their
                                                                                 limits decrease and their interest rates rise.
                                                                                 Others who had once enjoyed job security
                                                                                 found themselves on the unemployment line.
                                                                                 Still more sank underwater as their mortgages
                                                                                 reset to much higher interest rates.

                                             On the front lines of the consumer battle for solvency, the staff of ClearPoint rolled up their
                                             sleeves. Financial specialists reached out helping hands to communities across the country,
                                             providing budgeting advice, mortgage help, and education outreach. By year’s end, ClearPoint
                                             had counseled a record number of clients; forged strategic alliances with leading community
                                             businesses and civic groups; accomplished major systems upgrades; and expanded both our
                                             footprint and our platform of services.

                                             A major catalyst to growth was ClearPoint’s merger with ByDesign Financial Solutions, the largest
                                             purveyor of consumer credit counseling services in California. Bringing an agency with a strong
                                             track record in housing counseling under the ClearPoint umbrella empowered ClearPoint to
                                             become a force in the national housing counseling arena as we added reverse mortgage and
                                             foreclosure mitigation counseling to our menu of services. This is evidenced by ClearPoint’s
                                             selection as a Department of Housing and Urban Development National Intermediary in July,
                                             2009. ClearPoint implemented a state-of-the-art Cisco VoIP phone and data system, allowing us
                                             to more efficiently serve our larger client base..

                                             ClearPoint remained focused on cultivating an expanding network of strategic alliances with
                                             credit unions and community banks. ClearPoint took financial education into the community
                                             by placing counselors on site. That strategy has helped us reach consumers at an earlier point in
                                             the debt cycle, providing them with highly personalized service and forging strong ties to the
                                             communities we serve.

                                             In 2009, we greatly enhanced our portfolio of multi-media outreach presentations on
                                             current topics, among them Budgeting, The Wise Use of Credit, Buying a Home, Surviving
                                             Financial Setbacks, and Avoiding Foreclosure. Designed to engage the audience and visually
                                             communicate key concepts, the presentations also incorporated video testimony with subject-
                                             matter experts from our partnership with the Council of Better Business Bureaus. That initiative


CFS Annual Report 2009.indd Sec1:2                                                                                                           4/2/10 1:34:53 PM
   COMMUNITY FOCUS                                                     AND           OUTREACH”
              began promoting quality online financial education at www.us.bbb.org in February, 2009 and
              has been extremely well received by consumers.

              ClearPoint continues to pursue an active media relations strategy in order to bring consumers
              current and timely information on credit and debt. In 2009, ClearPoint counselors and clients
              were featured in more than 317 unique media stories across the country, raising our profile as a
              credible source for sound financial education.

              Another opportunity born of the merger was a financial education curriculum for young adults.
              ClearPoint revamped ByDesign’s tried and tested primer, Financial Firsts: Money Management
              for a Lifetime, for a community college audience. After testing the program last fall at Germanna
              Community College in Fredericksburg, ClearPoint turned fresh attention to this critical audience.
              More to come on that venture in 2010!

              OUR MISSION
              Clearly, 2009 was the year we put our newly minted mission statement – Consumer Health
              Through Financial Education – to work. A year into our first strategic plan, we evaluated
              our vision statement and core values, reshaping them to reflect the reality of our growing

              OUR VISION
              ClearPoint will excel in solutions-focused financial education and quality customer service.

              CORE VALUES
                 ◌ Enthusiastically promote ClearPoint           ◌ Empower others
                 ◌ Share my knowledge                            ◌ Efficiently deliver services
                 ◌ Protect confidential information              ◌ Respect others
                 ◌ Be accountable                                ◌ Demonstrate integrity
                 ◌ Provide unbiased advice                       ◌ Be a team player

              Even as we enjoy the successes of 2009, we are planning new ones to carry us forward; last year was
              a year of tremendous accomplishments, but the best is yet to come. ClearPoint is an organization
              of quality employees who are committed to helping consumers overcome what are often the
              most challenging financial hurdles in life. They combine compassion and professionalism to
              deliver the highest quality financial education services in the credit counseling industry. I am
              proud to be associated with them in this great enterprise of providing consumer health through
              financial education!

                                                                  Christopher J. Honenberger
                                                                  PRESIDENT AND CEO

                                                                                            CLEARPOINT CREDIT COUNSELING SOLUTIONS 2009 ANNUAL REPORT   3

CFS Annual Report 2009.indd Sec1:3                                                                                                              4/2/10 1:34:53 PM
         G rowing Our Organization

                                                      THE CALIFORNIA CONNECTION
                                                      Our merger with ByDesign Financial Solutions in May expanded our
                                                      brick-and-mortar presence to 11 California communities spanning from
                                                      Redding south to Los Angeles. New staff competencies allow us to reach
                                                      further into the Latino and Hmong populations so prominent our new

                                                      ByDesign, formerly Consumer Credit Counseling Service of Los Angeles, the
                                                      Sacramento Valley, Mid-Counties and the Central Valley, brings additional community
                                                      presence, credibility and visibility to strengthen the organization and better serve the
                                                      needs of consumers seeking in-person credit, housing and bankruptcy counseling.

                                                      With their proximity to six cities hardest hit by the mortgage crisis, legacy ByDesign
                                                      financial specialists are well-versed in housing counseling—especially mortgage
                                                      default and foreclosure counseling. With growing housing expertise, ClearPoint now
                                                      has the capacity to assist clients challenged by housing issues on a nationwide basis.
                                                      We dramatically increased our staff dedicated to assisting homeowners and helped
                                                      over 18,000 families facing default and foreclosure.

         In 2009, we increased our number
         of local branches from 40 to 52.

                                                      CAPACITY BUILDING
                                                      We augmented our staff by 48%, up to 231 employees, enabling us to counsel and
                                                      educate an ever-increasing number of clients.

                                                                     2008 - 156 Employees

                                                                     2009 - 231 Employees


CFS Annual Report 2009.indd Sec1:4                                                                                                               4/2/10 1:34:53 PM
                                                                             I ncreasing Community Involvement

              ClearPoint continued to build strategic alliances with community
              banks, credit unions, employee assistance programs, major
              employers, and community colleges.

              These partnerships have allowed us to: 1) identify clients who will benefit from                      Strategic Alliances
              our services earlier in their stage of financial distress, often eliminating the pitfalls             Arsenal Credit Union
              of payday lending, debt settlement, bankruptcy and foreclosure; 2) broaden                            Burke & Herbert Bank and Trust
              our public awareness and branding initiatives; and 3) expand our community                            Call Federal Credit Union
              presence while promoting financial education with on-site counseling and                              Central Valley Coalition for Affordable
              workshops.                                                                                                 Housing
                                                                                                                    City of Merced
              EDUCATIONAL OUTREACH                                                                                  DuPont Fibers Federal Credit Union
              As a result of our strategic alliances and focus on outreach, we realized an                          Eastern Virginia Bankshares
              incremental demand for presentations. We conducted 898 presentations, with                            Fort Lee Federal Credit Union
              17,839 attendees, a 27% increase in the number of presentations over 2008. Our                        Fresno County Federal Credit Union
              financial specialists reached out to 2,141 businesses and organizations—a 61%                         Germanna Community College
              increase from the previous year.                                                                      Henrico Employment Transition Center
                                                                                                                    Hewitt Associates
                                                                                                                    Members First Credit Union
              MORTGAGE DEFAULT
                                                                                                                    River Region Credit Union
              In light of the merger, we experienced impressive growth in our capacity to assist
                                                                                                                    Union Bank and Trust Company
              homeowners with mortgage delinquencies. We dramatically increased the num-
              ber of housing specialists dedicated to assisting homeowners and helped over
              18,000 families in danger of losing their homes.

              A FIRST FOR
              FINANCIAL FIRSTS™
              Inherited from ByDesign, the Financial
              Firsts™ program guides participants
              as they maneuver through six critical
              financial challenges--first checking
              account, first job, first car purchase, first
              credit card account, first home-away-
              from-home, and first college education.
              After customizing and rebranding the
              curriculum, our pilot program taught
              to students at Germanna Community
              College in Fredericksburg, Virginia was
              met with great success. We are now
              seeking funding to expand this program
              to other colleges.

                                                                                                CLEARPOINT CREDIT COUNSELING SOLUTIONS 2009 ANNUAL REPORT     5

CFS Annual Report 2009.indd Sec1:5                                                                                                                   4/2/10 1:34:54 PM
         Making News

                                                           We are consistently looking for ways to create community
                                                           awareness of the special work done at ClearPoint, and to provide
                                                           the public with critical personal finance advice through educational
                                                           presentations and media interviews.

                                                           Several highlights of the year in media include:

                                                                • An NBC story profiling a client, Marissa Ruiz, to illustrate the dangers of debt settlement. The
                                                                  segment aired in Spanish on Telemundo, and on the NBC Nightly News, and The Today Show.
                                                                • The only agency quoted in a February 2009 article in U.S. News & World Report entitled “7 Steps
                                                                  to Finding the Right Credit Counselor”.
                                                                • Inclusion in two features articles in Kiplinger Magazine—one on alternatives to bankruptcy, the
                                                                  other on finding legitimate credit counseling assistance.

                                                           BBB VIDEO PROGRAM
                                                           The Internet-savvy consumer absorbs information in a variety of ways. ClearPoint
            110          27          131   49              worked with the Council of Better Business Bureaus (CBBB) to develop 20
                                                           financial education videos designed to provide useful, bite-sized financial
                           TOTAL 317

          2009 Media Interviews                            Hosted on the CBBB’s national Web site, our videos garnered 13,343 unique page
          ■ Television - 110                               views in a six-month period. Visitors stayed more than four minutes on the most
          ■ Radio - 27                                     popular clips, and spent an average of two minutes and 13 seconds watching
          ■ Print - 131                                    each clip.
          ■ Internet - 49
                                                           BUS ADS
                                                           In an effort to encourage consumers to tackle their debt earlier, public service
                                                           announcements featuring client Laurie were posted over eight months in thou-
                                                           sands of buses in 14 major cities. Bus riders were directed to a corresponding
                                                           Web site, repaydebt.org, to read clients’ personal stories, watch videos, read our
                                                           counselor blog.


                                                                                                            WEB VISITORS
                                                                        276                                 Our unique visits to ClearPoint Web sites
                                                                     25,                                    increased by 25,276 from 2008 to 2009.



CFS Annual Report 2009.indd Sec1:6                                                                                                                                   4/2/10 1:34:55 PM
                                                                                                                   F unding

              For the first time, ClearPoint engaged a full-time fund development
              specialist to identify and pursue region-specific grant opportunities.
              Such financial support allows us to capitalize on our local presence
              and to reach out to more residents in need. Grants from the Wells
              Fargo Foundation, Bank of America and US Bancorp, for instance,
              allowed us to provide housing default workshops and counseling
              and home pre-purchase workshops to distressed homeowners and
              potential homebuyers in California and Illinois.


                  Client Fees & Contributions    Creditors         Grants
                              45%                 40%              15%

                                                                               CLEARPOINT CREDIT COUNSELING SOLUTIONS 2009 ANNUAL REPORT   7

CFS Annual Report 2009.indd Sec1:7                                                                                                 4/2/10 1:34:56 PM
         P rofile of the ClearPoint Client

                                                            In 2009, the drawn out financial crisis resulted in high default rates
                                                            on credit card and mortgage payments, unemployment and ever-
                                                            growing consumer debt. In general, our clientele’s circumstances
                                                            mirrored those trends. The majority of those we counseled cited
                                                            the cause of their financial problems as unemployment or reduced
                                                            income, followed by poor money management and increased living
                   31%               20%                    expenses.
                 Consumers            Debt
                 Counseled           Repaid
                                                            Low-, mid-, or high-income earners; homeowners or renters, Californians or
         Increase from 2008 to 2009                         Virginians, our clients remain a diverse group.
         Due to an increase in demand for
         our services combined with our                     CLIENTS ON OUR DEBT MANAGEMENT PROGRAMS
         expanded, merged counseling                        Average Gross Income $53,902
         capacity, the total number of                      Average Unsecured Debt $22,292
         consumers we counseled rose 31%                    Average Age 46
         (from 72,841 in 2008 to 95,586). As                Average Number of Creditors 9
         a result, from the previous year, debt
         repaid to creditors by our clients also            GENDER & MARITAL STATUS
         rose by 20%, more than $23 million.
                                                                                           37.4%         Married
         Total Debt Repaid to Creditors
                                                               53%          47%             50%          Single
         by ClearPoint Clients: $139,980,459
                                                                                            9.4%         Divorced or Separated
         Total Number of Clients
                                                                                            3.2%         Widowed
         Counseled: 95,586

                                                            CAUSES FOR FINANCIAL DISTRESS

                                                                          Poor Money
                                                                          Management                               9.1% Unemployment
                                                                                                                   10.7% Other
                                                                                                                   4.4% Payment Delinquencies
                                                                                                                   6.8% Medical Expenses
                                                                         32.1%                                     4.5% Divorce or Separation
                                                                     Reduced Income
                                                                                                                   6.2% Increased Living Expenses
                                                                                                                   2.1% Adjustable Rate Mortgage
                                                                                                                   1.0% Death of a Family Member


CFS Annual Report 2009.indd Sec1:8                                                                                                            4/2/10 1:34:57 PM
                                                                                          How We’ve Helped

                                                                “Thank you for being so patient. You are a wonderful person for
                                                                people like us that are going through hard times.” Jan S.

                                                                “It was such a pleasure to work with you and ClearPoint. One
                                                                thing for sure you all made this journey clear and to the point. I
                                                                would recommend you guys to anyone because you have been a
                                                                great help with my credit. It feels wonderful to know all is paid off
                                                                and I am that much closer to getting my home.“        Rosina V.

                                                                “I feel like I can breathe a little bit again, because now I know I
                                                                have options. THANK YOU for all of your time and willingness to
                                                                answer my questions.” Jessica B.

                                                                “I just wanted to commend you on having such a wonderful
                                                                person as [my customer service representative] working for you.
                                                                Over the past 2 1/2 years, I have emailed her with many questions
                                                                about my account. Not once did an email go unanswered. I wish
                                                                that every customer service representative was as pleasant as her
                                                                to work with.” Ashley L.

                                                                “As you know, when a consumer is really ‘in the dumps’ about their
                                                                finances, things are pretty sensitive. People feel embarrassed and
                                                                out of luck. [My counselor] was always objective and supportive. I
                                                                really felt we had the same goal, get out of debt!” Sun S.
                                                   Mortgage     “This program has been wonderful and has truly taken the
                                                                burden off of me. The harassing phone calls have stopped and I
                                         13%                    finally feel like I have my head above water. I want to thank you
                                                                for all of your help so far and I look forward to continuing to get
                                                                my debt down.” Sarah D.

                            5% Reverse Mortgage
                            1% Pre-Purchase Homebuyer

                           Types of Counseling

                                                                            CLEARPOINT CREDIT COUNSELING SOLUTIONS 2009 ANNUAL REPORT     9

CFS Annual Report 2009.indd Sec1:9                                                                                                4/2/10 1:34:58 PM
        Board of Directors

           Roger B. Ball - President
           Call Federal Credit Union

           Charles Bruen - President & CEO
           First Entertainment Credit Union

           Michael F. Bumpass - President & CEO
           FirstPoint Resources, Inc.

           Ernest A. Delia
           Retired, Ethyl Corporation

           Catherine K. Gamble - Finance Director
           Fox Sports Net Midwest

           Jules B. Gerard - Prof., Emeritus
           Washington University - St. Louis

           Paul W. Howle, III
           Retired, Wachovia Bank

           Paul W. Jacobs, II, Esq.
           Christian, Barton, L.L.P.

           Gerhard J. Petzall, Esq.
           Guilfoil, Petzall and Shoemake, L.L.C.

           Eugene B. Poelker
           Retired, Boatmen’s Bancshares, Inc.

           Rosemary M. Pulliam
           Retired, World Financial Group

           Daniel P. Salandro - Associate Professor, Finance
           Virginia Commonwealth University

           Ann Stahl - Adjunct Professor
           California State University, Northridge

           Dianne H. Williams - Director Communications
           St. Louis Metro                                     C R E D I T C O U N S E L I N G S O L U T I O N S®

           Albert F. (Duff ) Young, Jr.                        Main Office
           Perspective Advisors, L.L.C.                        8000 Franklin Farms Drive
                                                               Richmond, VA 23229


CFS Annual Report 2009.indd Sec1:10                                                                                 4/2/10 1:34:59 PM

To top