The sales representative who I spoke with in June of 2005 regarding their "interest minimizer program" told me that my financial institution would be paid twice a month rather then just once as it turns out they are doing. I was not aware of this fact until 2 months after they started removing money from my bank account in October 2005 when I happened to contact my lender. They rely on lies and deceptive advertising practises to make sales of useless services which actually cost more to the consumer. If the consumer sent in payments to the lender on their own they would save money over using Nationwide Bi-Weekly Administration but the sales people are trained in denying this fact.
I cancelled my membership on December 13, 2005 and right before I did I spoke with a new NBA sales person to ask questions as if I was a new client regarding how much I would save by using their service and she told me the same thing the man who signed me up did i.e. that I would be saving money with NBA over doing it on my own which by now I know is a complete lie. The facts are clear that my mortgage lender and most all other lenders will not accept bi-weekly payments yet the sales representatives of NBA I spoke with both went out of their way to deceive and avoid informing me of the truth. Furthermore the contract they send titled "Nationwide Biweekly Administration Interest Minimizer Program Agreement" insinuates that the lenders are paid bi-weekly just as the sales representative informed me of. In fact nowhere on the first page of the contract does it mention that this is not the case and unless you manage to find the small print on the back of the contract in section 8 line 3 where they say the loan will only be paid once a month you are lead to believe by their sales people that their program is unique and will save you money by being able to make bi-weekly payments to the lender. The program they offer is a farce and a scam which costs the consumer more not less which is contrary to what their sales representatives preach on the phone.
When I canceled the program December 13, 2005 I asked for a refund from a supervisor but they said they would have to check the phone record of when I called in to see if the sales representative who sold me the service did indeed misrepresent the program as I claimed and get back to me. They also said that the last two payments they took from my bank account November 25, & December 9, 2005 which they had not forwarded to my lender would be reversed and sent back to my bank account. I was told that this would take no more than 10 days yet as of today (25 days) they have not done so nor have they ever called back regarding the recorded phone conversation they told me they'd check.
This excerpt was taken directly from their web site:
Weekly, Bi-Weekly, or Semi-monthly payments for your home mortgage loan are scheduled around your budget and pay schedule.
Through the Interest Minimizer program, you can schedule your mortgage payments from monthly to: 1/4 weekly, 1/2 bi-weekly, or semi-monthly in order to simplify your budgeting around the way you get paid.
This is an Absolute LIE!
It should say "you can schedule how often we withdraw funds from your bank account 1/4 weekly, 1/2 bi-weekly, or semi-monthly in order to simplify your budgeting around the way you get paid but we Always Pay Just Once A Month to Your Mortgage Lender"
They guard the truth like the plague because they do not want to expose the fact that really what they do is earn lot's of money from the interest they get by holding the money in their bank account before forwarding to the mortgage holder. Even in their FAQ of the web site there is NO Mention of this but they are quick to expand upon how "Bi-Weekley payment plans have been around for over 20 years, but they've been a fairly well kept secret".
The ONLY Secret is one extra payment per year which anyone can do on their own and save all the fees they charge to handle the money.
They Scam Artists and have been reported to the Better Business Bureau & to the state of Ohio:
The Bureau processed a total of 147 complaints about this company in the last 36 months, our standard reporting period. Of the total of 147 complaints closed in 36 months, 29 were closed in the last year.
April 29, 2005 Nationwide Biweekly Administration, Inc. entered into an Assurance of Voluntary Compliance with the State of Ohio Office of the Attorney General, Consumer Protection Section.
The Assurance in writing by Nationwide Biweekly is of its intent to conduct itself in a manner designed to comply with the provisions of the Ohio Consumer Sales Practices Act and the Ohio Home Solicitation Sales Act. By accepting the written Assurance, the Attorney General agrees to terminate the current investigation of Nationwide Biweekly's business practices conducted before the date of the signing of the Assurance. The Assurance is not evidence of an admission of Nationwide Biweekly's violation of Ohio Revised Codes 1345.01, any administrative rule adopted under RC 1345.01 or RC 1345.21.
I will file a copy of this report with the attorney generals office as well as they have clearly conducted themselves in a manner contrary to the assurances they gave on April 29, 2005.