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Summer 2013 Community EXCHANGE powered by Consumer Credit Counseling Service of Delaware Valley Clarifi and the City of Philadelphia Open Financial...
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Summer 2013

Community

EXCHANGE

powered by Consumer Credit Counseling Service of Delaware Valley

Clarifi and the City of Philadelphia Open Financial Empowerment Centers Local Centers offer financial stability to 9,000 residents

Philadelphia Mayor Michael Nutter (center) and Clarifi President Patty Hasson (second from right) cut the ribbon at one of the city’s six Financial Empowerment Centers. Philadelphia’s need for financial guidance is greater than ever. The city has had the highest poverty rate among the country’s ten largest cities for the past 20 years. Additionally, incomes in Philadelphia have dropped eight percent in the past three years. Continued on page 2

Consumer Financial Protection Bureau Visits and ‘Listens’ to Philadelphia In June, Clarifi President, Patty Hasson along with Judge Annette Rizzo, who sits on the Court of Common Pleas in Philadelphia, co-hosted a visit from the Consumer Financial Protection Bureau (CFPB). Both Patty and Judge Rizzo were appointed to the CFPB’s inaugural Consumer Advisory Board, which provides advice to Continued on page 3

Richard Cordray, Director of the Consumer Financial Protection Bureau

Clarifi and the City of Philadelphia Open Financial Empowerment Centers In March, the City of Philadelphia and Clarifi partnered to open six local Financial Empowerment Centers. The initiative is being supported by a grant from Bloomberg Philanthropies and Living Cities’ Center for Financial Empowerment (CFE) Fund, and replicates a successful model from New York City. Over a three-year period, the Centers expect to help over 9,000 Philadelphians take control of their finances. Philadelphia’s Centers are currently helping residents in a number of ways, including opening a checking or savings account, reducing expenses and dealing with collection agencies—all fee-free. Clarifi sees the initiative as a way to expand its mission to create hope by helping people identify and secure the most important assets in their lives. “Helping low-income residents become financially stable has been an ongoing challenge. The Financial Empowerment Centers will offer Philadelphians the tools and guidance needed to achieve this stability—in the neighborhoods that need it most,” says Patty Hasson, President and Executive Director of Clarifi. Following in the footsteps of New York, Philadelphia’s initiative will focus heavily on outcomes—defined financial milestones that can be quantified over time. For example, if a counselor helps a client reduce debt, will that client avoid homelessness? Will they need to rely less on government services? Outcomes will focus on the areas of banking, savings, credit and debt.

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Since the launch, over 600 people have been counseled at the FEC Centers. In their first three months open, Philadelphia’s Financial Empowerment Centers are off to a successful start and have counseled over 600 clients. A 7th office is scheduled to open in Germantown in July.

Pay it Forward: Volunteer Opportunities at Clarifi Are you looking for a way to give back to your community? Consider volunteering with Clarifi! We’re

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currently looking for professional individuals that can help us bring lifelong financial literacy to more people. And if you don’t have a background in personal finance, our team will give you the knowledge you need! Here are some of our current volunteer opportunities:

credit, insurance, investment and retirement plans. Most instructors have a background in a financial field.

4Outreach Event Facilitator Do you like to meet new people? Work with our Outreach team to raise awareness of Clarifi’s mission and services.

4Administrative Coordinator 4Personal Finance Instructor Personal Finance Instructors conduct workshops on a variety of personal finance topics such as goal setting, budgeting,

Put your organizational skills to work managing projects and administrative tasks. Continued on page 5

CFPB Visits and ‘Listens’ to Philadelphia the CFPB on a broad range of consumer financial issues and emerging market trends. The visit to Philadelphia is one of many held around the country to learn about innovative efforts taking place to increase financial capability for low-income and economically vulnerable consumers. The visit kicked off with an event acknowledging the 5th Anniversary of The City of Philadelphia’s Residential Mortgage Diversion Program. The Diversion Program, which began in 2008, was the first city-sponsored plan in the nation to facilitate face-to-face negotiations between mortgage lenders and borrowers in connection with troubled loans. To date, more than 5,700 homes have been saved from foreclosure. CFPB Director Richard Cordray was among the attendees and spoke on the success of the Diversion Program in Philadelphia and as a model for replication in other cities. Cordray praised and recognized Clarifi’s participation in the program. “Clarifi has been an integral part of this program since the beginning, providing what I believe to be a key element, which is HUD-approved housing counseling.” The CFPB’s Office of Financial Empowerment staff facilitated a listening session, which was held at The United Way with 30 participants, representing a cross section of local leaders in the financial services,

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nonprofit, legal and research areas. Discussions centered on the most challenging issues Philadelphia faces with low-to-moderate income households. The CFPB staff also had an opportunity to visit and meet with leaders of financial programs in existence or in the planning stages. Site visits were held at The Dornsife Center at Drexel University, The Financial Empowerment Center located at the Municipal Services Building and Project Home in North Philadelphia.

Calling All Consumer Complaints Consumers can submit complaints to the CFPB about mortgage lenders or servicers, credit cards, auto loans, student loans, bank accounts and money transfers. The Bureau sends the complaint to the financial institution and may help to get the complaint resolved if needed. As of May 31, the CFPB has handled over 110,000 complaints. Complaint data also helps the Bureau identify and prioritize the most pressing consumer issues.

Consumers can submit a complaint at consumerfinance.gov or by calling 1-855-411-CFPB

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Representatives from Clarifi, the City of Philadelphia and the Consumer Financial Protection Bureau celebrate the 5th year of the City’s Residential Mortgage Diversion Program.

Clarifi Takes on Student Loan Debt Crisis ,175

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Over 200 students enrolled in the pilot, receiving a combination of career and educational planning, cost analysis, financial aid overview, FAFSFA and CSS Profile completion, award letter review and other services as needed.

Early Pilot Outcomes

495% of student survey respondents indicated that they changed their top school based on what they learned from participation in our program.

464% of those who knew the cost of their initial top choice school chose a less expensive school.

434% planned to borrow an average of $40,000 less over the course of their college career than when they first entered the pilot.

4 To learn more about our college planning services and student loan counseling,

visit us at clarifi.org and search “student debt”. Have an audience of junior or senior high students in your community? Clarifi Advisor Chris Chaplin is available to present on the critical steps in the college planning process. Call 888-657-4922

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In June, Clarifi completed an 18-month pilot of its college planning services with junior and senior high school students and their families. Funded in part by Citi, the pilot focused on students in low-to-moderate income families in Philadelphia and Wilmington, Delaware.

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200 Students Test Program

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Ultimately, we want to give students and families the most rewarding and affordable college experience. We believe that better planning produces higher completion rates, reduced time enrolled in school, less student loan debt and an overall better result.

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In an effort to help students and families before college debt is incurred, Clarifi launched its college planning services earlier this year. Working one-on-one with our Certified College Planners, the program guides students and their parents through the process of planning and paying for college by helping them make the most informed choices, based on their situation.

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Getting In Front of the Problem

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Amidst what the media is calling the ‘student loan debt crisis,’ Clarifi is offering innovative new services to help students better plan for college, take on less student loan debt and explore options for existing debt.

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The Power of Collaboration in Delaware Over 75 leaders gather in Delaware to build financial empowerment In March, Delaware Governor Jack Markel kicked off discussions with a group of over 75 Delaware leaders focused on connecting nonprofits who provide financial services to residents throughout the state. Governor Markell officially welcomed Clarifi to Delaware and highlighted the positive impact we can have on the community. A long-time supporter of lifelong financial literacy, Governor Markell shared some of the initiatives his office has taken to help people achieve financial independence.  Sponsored by Barclays in Wilmington, a panel of six community leaders shared information on their programs and illustrated that collaboration is already happening in Delaware and does work. Panel members

consisted of Clarifi President, Patty Hasson, Paul Calistro, Executive Director, West End Neighborhood House, Ronni Cohen, Executive Director, DFLI – The Money School, Michelle Taylor, President & CEO, United Way of Delaware, Mary Dupont, Director of Financial Empowerment, State of Delaware and Chris Grundner, President and CEO, Delaware Alliance for Nonprofit Advancement, DANA. Speaking of collaborations, Barclays has been a true collaborator with Clarifi, welcoming our agency to the state and paving the way for a great start. Clarifi has two offices in Wilmington as part of a collaboration with The Urban League and the Multiple Sclerosis Society.

Debbie Cooper, Clarifi, Delaware Governor Jack Markell and Clarifi Board Member Kathleen Leonik, Barclaycard (second from right), stand with nonprofit partners.

Paying it Forward...

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Volunteer Spotlight: Alan Kober Alan began volunteering with Clarifi in January of 2012. Formerly a manager at Rohm & Haas, Alan was looking for a way to give back to the community during his retirement.  His love of public speaking and general financial knowledge made volunteering with Clarifi a perfect fit. Alan has contributed hours of service teaching financial education workshops and has personally helped more than 50 people to better manage their budget, improve their credit and save for the future. 

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Women’s Influence in Finance Spotlighted at Community Awards Luncheon Steve Delaney & Tara L. Weiner, Deloitte; Linda Descano, Citi’s Women & Co.; Patty Hasson, Clarifi; Don Haskin, Citi. In a celebration of another successful year of helping clients see a clear financial future, and to thank funders and community partners, Clarifi held its 9th Annual Community Awards Luncheon in Center City in April. This year, Clarifi honored Tara. L Weiner, Managing Partner – Greater Philadelphia, Deloitte & Touche, LLP, with its Credit to Greater Philadelphia Award. Tara was recognized for her active engagement with a variety of nonprofit organizations that focus on education, the advancement of women and economic development of our region. “The best gifts you can give someone are the skills needed to be independent and the freedom to be self sufficient. Clarifi exemplifies this gift by helping many with financial

literacy,” said Weiner, upon accepting her award. Afterward, keynote speaker Linda Descano, President and CEO of Citi’s Women & Co., addressed the audience about the financial strides women are making, both at home and in the office. “Women are at a place of unprecedented financial ascendancy,” noted Descano. Clarifi President Patty Hasson also extended a thank you to Clarifi’s funders and community partners, who enabled the agency to conduct over 10,600 counseling sessions in 2012. Over 300 people attended Clarifi’s Community Awards Luncheon this year.

T HA NK YOU to our Sponsors of the 2013 Awards Luncheon

Presenting: Deloitte Supporting 6

Barclays HSBC Radian Guaranty Inc. Stradley Ronon Stevens & Young, LLP Susquehanna Bank The Bancorp

Contributing Capital One Citi PNC

Friend Bank of America KML Law Group, P.C. Penn Mutual Life PHMC VantageScore Solutions Vision Mortgage/Continental

Clarifi Welcomes Two New Vice Presidents

Markita Morris-Louis, Vice President of Community Affairs

Clarifi is pleased to announce the addition of two vice presidents in May. Markita Morris-Louis joined Clarifi as the new Vice President of Community Affairs. Markita has spent the last nine years as an Attorney in the Real Estate Group at Drinker Biddle & Reath, LLP. Previously she worked at a number of nonprofit agencies focused on low-income housing tax credits, consumer protection and antipredatory lending education initiatives. Markita currently serves as Board Chair for Regional Housing Legal Services. In her new role, Markita will oversee the outreach, education and development areas.

Stuart Miller Vice President of Counseling & Client Services

Stuart Miller is the new Vice President of Counseling & Client Services. Stuart brings an extensive background in the credit counseling industry, working most recently as the Director of Creditor Relations for a large national credit counseling agency.  Prior to his role there, Stuart spent the majority of his career at JP Morgan Chase in a variety of roles managing relationships with credit counseling agencies as well as in the collections and operations areas.  In his role, Stuart is responsible for the management of all efforts related to program implementation, program delivery, and the strategic goals of the counseling and client services departments.

New Board Members Clarifi proudly welcomes its newest board members Wayne Anglace Vice President, Senior Portfolio Manager, Delaware Investments Daniel McKenna Attorney, Ballard Spahr

Catherine Ulozas Director of Investments, Drexel University Karen Walters Senior Director, Independence Blue Cross

We Look Back to Plan Ahead! Check out Clarifi’s 2012 Annual Report by visiting clarifi.org/annualreport

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Consumer Credit Counseling Service of Delaware Valley

Non-Profit US Postage PAID Permit 28 Bellmawr, NJ

1608 Walnut St., 10th Fl. Philadelphia, PA 19103

MAIN OFFICE:

1608 Walnut St.,10th Fl. Phila., PA 19103

TELEPHONE:

800.989.2227 215.563.5665

WEBSITE:

clarifi.org

PA Locations:

Bristol Phila. – Center City Phila. – North Phila. – North Broad Phila. – Northeast Jenkintown Media West Chester

NJ Locations:

Burlington Cherry Hill

DE Locations:

Wilmington

Tackling Student Loan Debt Clarifi has been selected by The Center for Excellence in Financial Counseling at the University of Missouri-St. Louis and The National Consumer Law Center for a pilot to provide free counseling to student loan borrowers. The pilot is running through December 2013 and being delivered concurrently in four cities—Duluth, Boston, Philadelphia and New York City.

ACCREDITED COUNCIL ON ACCREDITATION OF SERVICES FOR FAMILIES AND CHILDREN, INC.

Clarifi’s student loan counseling helps borrowers to: 4 Explore available repayment options and potential solutions. 4 Establish a budget to cover monthly expenses, including student loans. 4 Contact private lenders to determine possible repayment solutions. As part of this service, Clarifi is partnering with Community Legal Services of Philadelphia to mentor counselors and to provide legal guidance to borrowers.

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