Transcribe Me Audio 1

can you give me an example of one of those features that you think is a key differentiator in this
industry?

Yeah. Sales process, customer service experience, the dispute process itself as it relates to the
effectiveness, and the streamlined nature. I would say the one [inaudible] we might be slightly deficient
is our Web application, which are in the process of totally revamping. But outside of that, I think it's
customer experience, the sales process, the dispute process in terms of efficacy and ease of use. And
then there might be other, let's just say, the actual service itself, which is the plan structure and the
tiers. Most companies have very intentionally confusing tiers structured in a way that's difficult to
compare. In a lot of cases, throttled just to set up the tiers to maximize MRI or LTV rather, so we're not
going to do that. But we can still have a tier service structured in a way that legitimately provides a ton
of value to the client without just throttling services to have some arbitrary plans set up.

Gotcha. Okay. Can you give me a sense of your impression of the broader landscape of kind of DIY credit
repair vendors and individual credit repair consultants? What's your general impression of that smaller
end of the industry segment, both in terms of kind of core credit repair organizations, but also these
kind of DIY folks?

Inconsequential.

And why do you say that?

They don't have a big digital presence in all the areas that we're focusing on.

Got it. Okay. What about vendors that don't provide credit repair services, but maybe offer adjacent
services like debt settlement, credit counseling, credit monitoring, as well as maybe like financial
products like credit building loans. How would you assess kind of the competitive challenge or their
presence in the overall landscape?

Debt settlement companies legally have to be separate entities, so we wouldn't be able to offer debt
settlement as a credit repair company. But in terms of other upsell opportunities or credit educational
FAQs for our existing clients to take advantage of, that's absolutely something we're in the process of
building, so pretty much-- any major credit service-- any major service that could be presented to a
client to improve their existing credit situation is absolutely something where the process of building
partnerships around to introduce to them in a very strategic and automated way, and in some cases in a
nonautomated, very precise, almost like by reaching out by call, etc. That's absolutely something we're
looking to implement. So that's a big part, I think of credit repair specifically.

Okay. Do you think consumers generally understand the distinction between a credit repair
organization, a debt settlement company, credit counselors?

No, they don't.

And why is that?

It's the fragmented nature of the industry and just like the built in confusion around how credit works in
general.
Okay, that makes sense. So the next few questions I have geared towards customer acquisition and
addressable market, what would you say are the most common events that trigger consumers interest
in credit repair, both generally across the industry as well as kind of in the case of your organization?

Are you talking about the major life events?

Yeah, it's often been describing me that people don't wake up one day and decide that they want
there's typically something that happens [crosstalk].

Make some major financial purchase. It could be a home or a car, but I would say most likely financing a
car.

Okay, how would you assess the typical consumers understanding of the process of credit repair, like
how a credit repair organization works? And do you think consumers understand the difference
between credit repair service and disputing items on their credit report directly with the credit Bureau
or with a creditor?

I would say less than 10% understand how to do it themselves, or understand the process as a whole.

And so, do you think consumers believe that digital account dispute tools provided by the credit bureaus
or third parties like Credit Karma will produce similar results to our credit repair organization?

I believe consumers if they understand that that's an option, I think the answer is probably they don't
think it will produce the same results. Otherwise, they wouldn't have the desire to sign up with us. And I
think objectively speaking, it wouldn't be the case that they would produce similar results.

Okay. Do you view those alternatives as a significant competitor in a threat