Reward Enterprises' Consumers Choice Unit Investor Update
HOUSTON, Mar 22, 2005 (BUSINESS WIRE) -- Reward Enterprises (OTCBB: RWRD), a
diversified financial services company specializing in sub-prime consumer
lending, issued this investor update today.
Since commencing start-up operations in December of 2004, Consumers Choice has
set forth to build a diversified financial services company. To date the Company
has announced the following progress:
Research began on a line of identity theft products to market on the Web. The
plan is to market a wide range of proprietary identity theft solutions and sell
the services at the high-end range of pricing from $200.00 to $750.00 in annual
fees. It is estimated that there are potentially thirty million consumers who
are victims of identity theft and there could be ten million new victims each
year.
Announced plans to file for a special services bank charter to issue a line of
credit cards to sub-prime lenders. Plans are to file the application by
mid-year.
Announced plans to work with underwriters for a line of consumer insurance
products for homeowners and auto policies. To serve the target sub-prime
customer base, the product line would be underwritten without evaluating a
consumer's credit scoring.
The Company announced it is set to have its Web site go operational by the end
of the first quarter. The site will be phased in through three stages with the
initial stage of operations having begun recently. Stage two of the Web site
will be to promote the site and bring an increased volume of potential customers
to the site. As announced previously, additional products such as identity
theft, insurance and mortgage lending programs will be introduced throughout the
year. Stage three will be the fully developed site that will include credit card
lending. This stage is dependent on the Company completing its bank charter
application and approval process.
Announced the launch of a subsidiary to operate a consumer debt recovery
business. The new subsidiary will operate as Consumers Solutions Inc. The new
operations will be managed by Bennet Blow, President of Retail Collections
Services Inc., a Houston-based debt recovery company, which will retain a 30%
ownership in the subsidiary. Mr. Blow brings considerable experience in
collection operations with over 15 years of industry experience in various
roles.
Following this up the Company announced the initial phase of operations for
Consumers Solutions Inc. will consist of purchasing small consumer debt
portfolios that meet the analytical standards developed by the company. The
consumers will be contacted and the Company will test its collection strategies.
This initial phase of operations will continue for approximately six months
until the debt purchasing criteria have been refined to deliver successful
results.
Announced launch of a debit card marketing program. Plans are to initially link
debit card Web sites to the Consumers Choice Web site and drive traffic to both
sites with cross promotions for various consumer financial products. In
addition, the Company plans to market debit cards to Latin American immigrants
that do not have access to mainstream financial institutions. This segment of
the population comprises a market estimated at almost twenty million consumers.
Forecast revenue projections for the debit card programs are $4,370,625 in 2005
and $14,979,750 in 2006.
In summary, the Company is following a steady growth and building stage that
will yield revenues in the initial year of operations and steady growth over an
initial three-year start-up phase.
About Consumers Choice Financial Services Inc.
Consumers Choice is a consumer financial services company with operations in
consumer debt-acquisition and many facets of sub-prime consumer lending. Based
in Houston, Consumers Choice has an aggressive growth and expansion plan that
includes a bank charter for issuing credit cards to targeted sub-prime
consumers. For more information, visit www.consumerschoicefinancialservices.com.
SOURCE: Consumers Choice Financial Services Inc.
CONTACT: Reward Enterprises Inc., Houston
Vera Ferkashun, 713-937-1117
mail@consumerchoicefs.com
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