On Oct. 4, 2012 my wife received a letter that indicated a recent refinance with SWBC. The initial letter stated, "No Upfront Fee [in bold letters] to setup biweekly program (now deferred)." This turned out to be false. It looked like the letter was from SWBC or affiliate. It promised a faster principle payoff on our mortgage if we used the service. I called the company. While on the phone, the agent sent me data which showed, over the entire period of the mortgage, how much principle would be paid off faster. We never intended to keep the mortgage that long but I did not see the downside in signing up. The agent never said anything about a large, non-refundable $998.50 "setup" fee or cancellation period for the service. The agent sent a DocuSign agreement to me while we were on the phone.
I looked it over quickly and signed it. After I signed it and hung up the phone, I tried to retrieve it to print it out and read it more carefully but the document was no longer accessible. The next business day I called Nationwide and asked that they mail the contract to me for my records. The contract was not mailed until seven business days later. I inquired several times where it was during that period and was told it would be mailed. When I received the contract I saw that the contract could be cancelled within seven business days without incurring the fee which explains why they took so long to mail the contract.
Additionally, one clause in the contract made mention of a non-refundable setup fee equivalent to one bi-weekly withdrawal. There was no actual dollar amount stated and apparently no full disclosure statement required. The service would amount to an extra mortgage payment per year but not the first year since the fee is the first withdrawal made. The extra payment amount is made every six months not upon withdrawal. This is not specified in the contract. This is a total scam and I am very surprised that the Ohio Attorney General, Mike DeWine, has not protected the people of Ohio or the country from this company and its unethical tactics.