American Business Financial Services, Inc. Announces That Its Online Customers Can Access Credit Information Without Affecting Credit Rating

Business Wire, April 3, 2001

Business Editors

BALA CYNWYD, Pa.--(BUSINESS WIRE)--April 3, 2001

American Business Financial Services, Inc. (Nasdaq: ABFI) today announced that its online customers will now be able to utilize information from their credit report in real time without having a traditional loan inquiry placed on their file.

ABFI has worked closely with Experian, a leading provider of global information solutions and its affiliate, CBA in Cherry Hill, New Jersey, to develop this new service - an industry first.

Inquiries posted based upon activity in www.uplandmortgage.com's EasyLoan Advisor loan structuring system will be visible to the consumer, but will not be made available to credit grantors that subsequently access the report in connection with an actual loan application.

According to Anthony J. Santilli, ABFI Chairman and Chief Executive Officer, "This news is a real advantage to borrowers, who all too often don't know that too many credit inquiries can actually negatively impact their credit rating.

"For instance, every time a potential borrower applies for credit, even if it's a reply to a credit offer in the mail, the customer's credit will be checked and an inquiry will be added to his or her credit report.

"And, if a prospect is comparison shopping for a loan online, it's easy to incur multiple credit inquiries. These types of inquiries may be viewed unfavorably by creditors, because too many of them can indicate that the customer may be in financial trouble."

But consumers who visit www.UplandMortgage.com and use its patent-pending loan structuring technology, EasyLoan Advisor, will not have a traditional inquiry added to their credit history when structuring their personalized loan options online.

Santilli says, "EasyLoan Advisor was designed as the ultimate tool for online mortgage customers. Advances in encryption technology make it possible for customers to now work with their credit information in real time in a secure environment."

"EasyLoan Advisor is the only online mortgage tool that we know of that uses real credit data without requiring a customer to apply for a loan," Santilli continued. "The system gives our customers up to seven initial personalized loan scenarios before they actually have the option of applying for a loan, ensuring that their personal privacy and credit are protected."

"We believe that with this enhancement, EasyLoan Advisor is the most sophisticated and customer-friendly loan structuring system on the Internet," Santilli added. EasyLoan Advisor can be accessed through ABFI's consumer mortgage website at www.UplandMortgage.com.

About ABFI

American Business Financial Services, Inc., is a diversified financial services holding company, which provides credit services and investment products to consumers and businesses, including business loans, first and second home equity mortgage loans and subordinated investment notes. The Company offers its products and services to consumers and businesses nationwide.

For further information, contact Keith Bratz, VP-Corporate Communications, 610-617-7475.

About Experian

Experian is an information solutions company. It uses the power of information to help its clients target prospective customers, manage existing customer relationships and identify opportunities for profitable growth. Through multi-channel delivery of its web-based products and services, Experian enables its clients to conduct secure and profitable e-business.

Experian is a subsidiary of The Great Universal Stores, P.L.C. and has headquarters in Nottinghan, U.K., and Orange, California. Its 12,000 people support clients in over 50 countries. Annual sales are approximately $1.5 billion. For more information, visit the company's web site on www.experian.com.

Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements under federal securities laws. There are many important factors that could cause American Business Financial Services, Inc. and its subsidiaries' actual results to differ materially from those indicated in the forward-looking statements.

Such factors include, but are not limited to, general economic conditions, including interest rate risk, future residential real estate values, regulatory changes (legislative or otherwise) affecting the real estate market and mortgage lending activities, competition, demand for American Business Financial Services, Inc. and its subsidiaries' services, availability of funding, loan payment rates, delinquency and default rates, changes in factors influencing the loan securitization market and other risks identified in American Business Financial Services, Inc.'s Securities and Exchange Commission filings.