US Financial Management, Inc.

The gradual decline in the housing boom and the October 17, 2005 bankruptcy
reform bill, have allowed U.S. Financial Management, Inc. to experience
extraordinary business growth. As a result, we've seen a substantial
increase in clients that have suffered substantial financial hardships, had
little or no ability to pay their debts, or were facing insolvency.
Although we endeavor to provide quality service to all of our clients, it is
not surprising that this recent growth may have contributed to a
proportionately higher amount of local BBB complaints. What's troubling is
that despite our fair and ethical business standards, the San Diego County
Better Business Bureau published untruthful allegations about our
organization. Thankfully, due to the inaccuracies of these allegations, the
report is under review.

What is your actual performance record with the BBB?

Notwithstanding the recent increase of consumer complaints, U.S. Financial
Management, Inc. has always maintained a good performance record in
satisfying all local consumer complaints. This is evidenced in our online
San Diego County BBB Business Reliability Report, which indicates that ALL
consumer complaints were either "Resolved" or "U.S. Financial Management,
Inc. made good faith effort to Resolve."

What wrongful allegations caused your "unsatisfactory" rating?

U.S. Financial Management, Inc. was reported with an "unsatisfactory rating"
due to the following untrue allegations, which contend that consumers:

1. Do not seem to have a clear understanding of the procedures by which
USFM services are provided.

2. Consumers do not seem to understand that USFM does not pay creditors
immediately, but rather allows the consumer's deposit account to build funds
for several months before the negotiations with their creditors begin.

3. Do not understand that their credit rating may be adversely affected
because their bills are not being paid.

4. Several consumers have been met with lawsuits and wage garnishments.


Why do you consider the allegations to be untruthful?

We consider the reported allegations as "untruthful" because they do not
represent the physical business practices of U.S. Financial Management, Inc.
In fact, our bankruptcy avoidance program has always worked in the spirit of
"full disclosure." In maintaining the highest quality assurance standards,
we physically conduct a "Recorded Underwriting Verification Call" to ALL new
clients soon after enrollment. Our verification policy not only contradicts
the actual BBB allegations, but more importantly, it ensures that all new
clients receive proper disclosure of the following program "terms and
conditions" also in the signed, written contract:

1. Once you are accepted into the program, you will defer payment to the
creditor until a settlement is reached.

2. Our negotiation process usually does not begin until you have saved
enough money to make a reasonable offer to the creditors.

3. Once your creditors agree to the settlement amount, we will present you
with the offer. If you approve the offer then the agreed upon amount will
be paid by you out of your savings to the creditor.

4. All cards that are enrolled into the program will not be active and you
will no longer have credit privileges.

5. Your creditors have every right to contact you in order to collect the
amount you owe.

6. Your creditors have the right to file a judgment against you in order to
recover the money that is owed, but usually the purpose of a lawsuit is to
come to a settlement.

7. Your credit scores will be affected while in the program.

Why did the BBB report allege that consumers were "having difficulty in
receiving refunds?"

It is not clear why the BBB reports that consumers had difficulty in
receiving refund as the report also states that ALL consumer complaints,
including any "refund issues" were either "Resolved" or "U.S. Financial
Management, Inc. made good faith effort to Resolve." The present U.S.
Financial Management, Inc. contract also states that we issue a FULL REFUND
due to any cancellation received within 30-days of date of enrollment.
Additionally, while most debt management services abide by a "3-day
rescission period" for issuing refunds, we provide all clients with a full,
30-day window of opportunity to receive a complete refund for any
cancellation reason.

Why did the BBB assert that "30-days" is not enough time for consumers to
realize any benefit by being in the program?"

It is vague why the BBB made this assertion. However, we have made them
aware of all of our business services in addition to the debt settlement
benefits that we provide for our clients. During the first 30-days of
enrollment and throughout the duration of our program, U.S. Financial
Management, Inc. provides all of its clients with extensive ancillary debt
relief services including:

1. Providing full phone and fax support

2. Issuing and preparing creditor correspondence on behalf of clients

3. Issuing and preparing "cease and desist notifications" to debt
collectors on behalf of clients

4. Providing information on the Fair Debt Collection Practices Act to
educate clients on how to prevent abusive collection practices.


Is U.S. Financial Management, Inc. is affiliated with any organization
similar to the Better Business Bureau?

U.S. Financial Management, Inc. is proud to be affiliated with the Netcheck
Commerce Bureau (Netcheck). Netcheck operates globally in real time and was
the first alternative to the Better Business Bureau to promote ethical
business practices and to increase consumer and corporate confidence in
purchasing products and services on the Internet. Since being established
in 1995, Netcheck had over 32 million site visitors and they process online
complaints concerning fraud, refunds, copyright infringement, false
advertising, spam or unsolicited bulk email as well as provide the public
with the first and only global consumer complaint search engine on the
Internet. You can view our Netcheck Business Report at:
http://www.netcheck.com/usfinancialmanagement.shtml

Is U.S. Financial Management, Inc. a member of any local organization?

U.S. Financial Management, Inc. is a member of the San Diego Regional
Chamber of Commerce. This non-profit organization is one of the most
influential forces in local government and regional economic development.
With more than 3,000 members, the Chamber of Commerce is actively involved
in public policy and providing valuable resources to its members. Their
website is: http://www.sdchamber.org.

Is U.S. Financial Management, Inc. listed with Dunn & Bradstreet?
U.S. Financial Management, Inc. is listed with Dunn & Bradstreet "D&B"
(NYSE:DNB).  D&B is the leading provider of global business information and insight, has enabled customers to Decide with Confidence for over 160 years. The U.S. Financial Management, Inc. D&BR D-U-N-SR Number is a unique nine-digit
sequence that is recognized as the universal standard for identifying and
keeping track of over 80 million businesses worldwide. This makes it easier
for prospective customers to do business with U.S. Financial Management,
Inc. enhancing our credibility and enabling potential customers, suppliers
and lenders to easily identify and learn about our company. (Note: the U.S.
government and many major corporations require their suppliers and
contractors to have a D-U-N-S Number. The D & B website is: www.dnb.com.

Are you a member of any debt management organization?

U.S. Financial Management, Inc. is a member of the United States
Organizations for Bankruptcy Alternatives (USOBA). USOBA was founded by
members of the debt settlement industry that were seeking representation
specifically outside of the credit counseling and bankruptcy fields. The
mission of USOBA is to create and advocate an agenda only for the debt
settlement industry. Their website is: www.usoba.org.