Two of the oldest nonprofit credit counselors plan to merge, in a move that would create the second-largest such organization in the U.S.
ClearPoint Credit Counseling Solutions in Richmond, Va., will merge with CredAbility in Atlanta at the end of the year, the two companies announced Monday. The combined company will keep the ClearPoint name, and will be headquartered in Atlanta. The combination will be a merger of equals in which no payment will be exchanged, a CredAbility representative said.
Chris Honenberger, chief executive of ClearPoint, would be the chief executive officer at the combined company, and Phil Baldwin, CredAbility's CEO, will be president. The company will have 30 board members, 15 from each company.
"By combining our strengths ClearPoint's credit card repayment plans with CredAbility's housing and bankruptcy counseling we have created a stronger, more robust full-service counseling and education organization," said Honenberger in a news release. "In addition, with more people seeking financial counseling and education online and by phone, the combination also allows us to invest in new technology more efficiently."
The combined company will have 50 offices in 15 states and more than 150 counselors and financial educators. It will be the second-largest nonprofit credit counselor in the country by number of customers served and total number of employees, the CredAbility representative said.