CareOne Services Launches Dramatically Different Approach to Debt Settlement

Pilot Program Reduces Pre-Settlement Fees by up to 87 Percent from Industry
Standards

COLUMBIA, Md., Sept. 9 /PRNewswire/ -- CareOne Services Inc. has launched an
innovative debt settlement pilot program that eliminates the common industry
practice of charging high upfront fees before any services are performed.

The pilot program, now underway in Alabama, helps consumers pay down debt more
quickly by reducing pre-settlement fees by up to 87 percent versus other debt
settlement providers. CareOne consumers are charged nominal set-up and monthly
maintenance fees to establish a plan to pay off creditors. They get 24-hour
access to their account balances as well as free support services, financial
management advice and money management education.

CareOne's entry into debt settlement creates a new standard that sets it apart
from other providers who follow the current standard practice of charging
consumers thousands of dollars in fees before settlements are reached with
creditors. These upfront fees are not tied to any measure of consumer success
and are typically forfeited if consumers drop off the settlement plan - even
if no settlements were ever reached.

CareOne is modeling its pilot program based on standards adopted by the
National Conference of Commissioners on Uniform State Laws (NCCUSL). The
NCCUSL model act caps pre-settlement fees at a nominal level and settlement
fees based on a percentage of the savings realized by the consumer when an
outstanding debt is settled. The NCCUSL model act has been introduced in 25
states and has been enacted in six states.

Like other debt relief services, such as debt management and credit
counseling, the debt settlement industry fills a critical need by helping
consumers improve their economic welfare. A recent study by Dr. Richard
Briesch, an associate professor of marketing at Southern Methodist University,
found that debt settlement plans generate tremendous value for consumers,
particularly consumers who have high debt among a few accounts.

"CareOne agrees with many of the findings of Dr. Briesch's study, particularly
the importance of full disclosure of funding sources for credit counseling
agencies and the need for debt settlement agencies to be able to set up trust
accounts for accruing funds to pay creditors," said Mike Croxson, president of
CareOne Services. "However, we do not agree with one critical conclusion of
the study -- that consumers should continue to pay high upfront fees before
any debts have actually been settled or saving generated. That is why
CareOne's fee structure is so different."

Dr. Briesch's study recommended that debt settlement companies should be
allowed to charge consumers fees prior to achieving settlements, and concludes
by saying that "any attempt to ban these fees would have a chilling effect on
the industry and is inappropriate for this industry."

Similar claims have been made by industry leaders as well. In testimony to the
NCCUSL committee on debt settlement, Robert Lemelin, then co-chairman of the
National Association of Consumer Debt Settlement Companies, stated that "it
would be extremely difficult, if not impossible, to maintain the high level of
service currently being provided by debt settlement companies" if upfront fees
were eliminated or limited.

"It is difficult to imagine why any provider should charge consumers thousands
of dollars in fees before any payments are made to creditors," said Croxson.
"That type of approach is not in the consumer's best interest and has resulted
in federal and state regulatory actions against debt settlement companies.
CareOne believes there is a better model for this industry, and that is why we
have launched our new pilot program for debt settlement. We plan to invite Dr.
Briesch to evaluate the success of this new model as part of his ongoing
research."

The CareOne pilot program offers a number of features that make it a better
choice for consumers than most existing settlement models. These include:

-- Offering the debt settlement product only to consumers who are best
suited for that solution and offering free advice on other options
that
may be more appropriate.
-- Charging only nominal fees to set up and maintain an account that will
repay creditors.
-- Providing 24 hour access to information on where the consumer account
balance stands.
-- Charging a settlement fee only after an agreement with a creditor has
been reached and savings are achieved on behalf of the consumer.
-- Offering free access to support services, financial management advice
and money management education while the consumer is contributing to a
debt settlement fund.
-- Supporting consumers with on-going outreach to encourage and support
consumers enrolled on the debt settlement product.

-- Capping the total of all fees charged to ensure consumers are not
immediately thrown back into a cycle of debt.

"The pre-settlement fees we are charging in our pilot program in Alabama are
nearly 90 percent lower than upfront fees commonly charged to consumers in
this state. This approach ensures consumers can save more and reach
settlements faster, as well as creating an incentive for CareOne to help
consumers save as much money as possible in settlement agreements," said
Croxson. "CareOne is committed to doing the right thing for consumers, and we
will continue to introduce innovative products that make a difference in
helping consumers deal with debt."

Background Information About Debt Settlement
Debt settlement providers typically negotiate with creditors on the consumer's
behalf to settle on an amount less than what the consumer owes. The consumer,
meanwhile, makes equal monthly payments into a fund that accumulates enough
money to settle individual debts. The service is good for consumers who can
afford to pay some, but not all of the debt they owe. The average consumer
seeking debt settlement owes between $30,000 and $35,000 to seven or eight
creditors.

The Southern Methodist University study can found at
www.consumercreditchoice.org.

For more information about CareOne Services, Inc., visit
www.CareOneCredit.com.

About CareOne Services
CareOne Services Inc. was formed in 2002 to provide consumers with multiple
solutions to complex money problems. CareOne Services Inc. boasts a unique
Financial Fitness Center that examines each consumer's individual financial
situation and develops a personalized solution to help the consumer get out of
debt and strengthen his or her financial footing.

CareOne Services, Inc. has helped hundreds of thousands of consumers. CareOne
takes a holistic approach in assisting customers to manage their debt, looking
at an individual's situation and creating a solution that is achievable and
works. CareOne does not offer to change or improve an individual's credit
score, record or rating. CareOne goes beyond providing the standard debt
payment programs, helping consumers address day-to-day life issues that are
the result of being in debt along with free educational tools online.

SOURCE CareOne Services, Inc.

Mark Tosczak, +1-336-553-1808, mtosczak@rlfcommunications.com, for CareOne
Services, Inc.