American Business Financial Services and Consumer Credit Counseling Service Establish Unique Customer Referral Alliance; Program Believed To Be First In Country.

Business Editors

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Oct. 24, 2002

American Business Financial Services, Inc. (the "Company") (NASDAQ:ABFI), a diversified financial services company, and Consumer Credit Counseling Service of Delaware Valley (CCCS), the largest non-profit credit counseling service in the Delaware Valley, have joined forces to offer free credit counseling and debt management programs to eligible home equity loan customers of the Company's operating subsidiaries.

As part of this unique alliance, American Business Financial Services will pay the set-up fee and monthly contribution for eligible home equity borrowers who are having difficulty keeping up with their monthly mortgage payment, and who voluntarily enroll in the Debt Management Program offered by CCCS. While enrolled in the program, borrowers must keep their mortgage payments current with the Company's subsidiary in order for the Company to continue paying the cost of the Debt Management Program.

Anthony J. Santilli, Chairman, President and Chief Executive Officer of ABFI said, "While our Company has one of the lowest rates of delinquency in the subprime industry, we know that circumstances beyond their control can often put the best of borrowers in jeopardy of not making their monthly mortgage payment. We believe that guiding these customers to programs like the one we're initiating with CCCS is in the best interests of the borrowers, the Company and the communities we serve. We are proud to participate."

Under the Debt Management Program, CCCS will work with customers and act as mediator between them and credit card companies, or other unsecured lenders, to work out more favorable repayment terms. Under CCCS programs 100 percent of debt is eventually repaid. American Business Financial Services will receive no compensation or other consideration for its participation in this arrangement.

Patricia Hasson, President of CCCS, said, "We believe this is the first such program in the country. It will clearly benefit the Company's customers, but it will also serve as a model for companies that want to intervene before credit problems become insurmountable."

"ABFI may expand this program into other states once we've had a chance to evaluate the success of this pilot program," Santilli said.

Earlier this year American Business Financial Services pledged $5 for each new loan origination, or a minimum of $50,000, to CCCS for its work with debt-laden consumers all over the Delaware Valley. In addition, Stephen M. Giroux, Senior Vice President and General Counsel at American Business Financial Services, was recently appointed to the CCCS Board of Directors.

American Business Financial Services, Inc. is a diversified financial services company operating predominantly in the eastern and central portions of the United States. The Company originates business purpose loans and first and second mortgage loans through a combination of channels, including a national processing center located at its centralized operating office in Bala Cynwyd, Pennsylvania, a regional processing center in Roseland, New Jersey, and a retail network of branch offices.

For more information contact Keith Bratz, VP-Corporate Communications, 610-617-7475, or Maureen Keown, Marketing Director, CCCS of Delaware Valley, Inc., 215-563-5665, ext. 3338.

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.