Complaint Review: United First Financial - Internet
- United First Financial http://www.u1stfinancial.com/ Internet U.S.A.
- Category: Multi Level Marketing
United First Financial Jubilee MMA Money Merge Account SCAM CULT MULTI LEVEL Internet Internet
*General Comment: this is to all of the former or curent agents of mma on this report
*UPDATE Employee: If you don't understand the math, don't buy the product....
*Consumer Comment: The Facts
*Consumer Comment: If it looks like a scam, walks like a scam, and quacks like a scam...
*Consumer Comment: u first is for real
*UPDATE Employee: United First Financial, The Answer...not the problem
*UPDATE Employee: United First Financial is not a scam.
United First Financial Jubilee MMA Money Merge Account
United First Financial has developed a web based software system that makes some interesting and intriguing claims:
Pay off your mortgage in one-half to one-third the time with little or no change to your lifestyle
It's a claim that is on the United First Financial (UFF) web site, it's a claim that the majority of the UFF agents make, it's impressive, but it's a lie.
The software program utilizes a Home Equity Line of Credit (HELOC) and tells clients to use it as a checking account. The client is to deposit all paychecks directly into this account and pay all bills out of the account. The software tells the client exactly when to pay a bill, and when to send huge pre-payments towards their mortgage.
UFF claims by using this HELOC account like a checking account you can save tens of thousands of dollars and save years off your mortgage. When following the program, all of the discretionary income filters through the HELOC and goes right to the mortgage. This is not mentioned in the UFF agents pitch.
Instead, the agents attribute the savings to the HELOC or Money Merge Account (MMA). Agents claim that by leveraging your paycheck, you can save tens of thousands of dollars and years off your mortgage. What the agents don't tell you that it is the huge pre-payments to the existing mortgage from the HELOC that creates the savings. Because HELOCS have a higher APR, you have to pay back these huge pre-payments at a higher interest rate (APR) then you normally would if you simply pre-paid the mortgage directly, without the software.
In order for the United First Financial software to work, you would have to drastically change your spending habits. No going to the movies, spending money on designer clothes, going out to dinner, etc. IF THAT IS NOT LIFE CHANGING, I DON'T KNOW WHAT IS!
The HELOC can save you pennies when operated correctly, but would never be enough to justify the software cost ($3500). The reason why the UFF owners created the system around using the money merge account (HELOC) is because it confuses the clients. Not to mention the creators are mortgage brokers who collect commission on new HELOC accounts.
The agents of this product, either deceptively or unknowingly, attribute the savings of interest to the HELOC shuffle (again, this only saves pennies). The ONLY reason people buy the software is because they believe the HELOC is saving them HUNDREDS OF THOUSANDS in interest this just is not true and I really wish it was, but it is not! The clients don't realize that their extra money is indirectly going to their mortgage. They believe that the software does something that it does not because many of the agents do not know the truth themselves.
In the real world I believe the HELOC would be too tempting to many people and would cause them to get deeper into debt. I have asked agents how this software outperforms other tools that anyone can use for free or for maybe 2% of the cost of UFF, to this day I have no reply.
Agents argue that the software has value because it is a motivational tool, they claim that clients are motivated to get out of debt when they see how much they can save by sending more money towards their mortgage. The agents only make this motivation argument AFTER questioned on the validity of their claims about the actual amount of HELOC savings. The "clients" that fall for this scam do not buy the software as a motivational tool, and that is about the only value the software has. Anyone could replicate this motivation by using a free mortgage calculator to figure out how much they save by not buying something, and instead send that money towards their mortgage.
Using a calculator is easier then logging onto a website and inputting the appropriate field. Calculators are free on the web, and very cheap in many stores.
In several mathematical scenarios United First Financials software comes out behind a free system that people have been using for decades. The do-it-yourself method takes less time than using the software and is easier. Instead of sending $3500 to United First Financial, simply add up your income, subtract your expenses, and then use the leftover money to pay your mortgage each month.
The major argument that agents use against this do-it-yourself approach is that sending all your additional money to your mortgage leaves you vulnerable in an emergency situation.
This can very easily be avoided by opening a HELOC, independent of UFF and only using it for emergencies.
Agents also claim that people just don't do it themselves. The make claims that 95% of Americans are drowning in debt and at least their software points them in the right direction.
The problem with that statement is that the software gets them MORE in debt. $3500 for a software program that can be replicated with a free calculator and a sheet of paper is not revolutionary, though the agents also make that claim. Budget software ranges from free (www.download.com) to $100 for the fancy programs (Microsoft Money, Quicken, etc).
If the UFF software truly did what its agents say, UFF wouldn't need agents. You would see the UFF software in every retail store across America (Circuit City, Best Buy, Wal-Mart). The problem is that it doesn't, that's why UFF uses a Direct Sales approach, retail stores don't want to ruin their name by selling scam software.
In mathematical scenarios comparing do-it-yourself to UFF, do-it-yourself has always come out ahead, sometimes as much as paying off the mortgage 6 months sooner and saving $20,000 more than UFF.
WHY DO-IT-YOURSELF IS BETTER, EASYER AND CHEAPER THEN UFF:
1. You don't have to log onto a web site and plug in all your information, taking up to an hour each month. Agents claim that Americans don't have the time to do-it-themselves. What? Doing it yourself might take 5 minutes a month, much easier then logging on to the website and filling out all the fields.
2. You don't have to give $3500 to an agent for useless software.
3. UFF agents claim you get life-long support on the software. Do-it-yourself does not require software and only requires a calculator and your bank statement no support needed.
4. UFF agents will often try to recruit you into their multi-level-marketing company. This can lead to embarrassment when your friends and family find out that it is a scam and that you have been scammed. Do-it-yourself will never scam you or your friends and family!
5. UFF agents claims that Americans can't do it themselves as effectively. This is another lie, because of the software cost, UFF can't beat out doing it yourself.
6. UFF agents claim Americans are not smart enough to do it themselves. Again false, to do it yourself you do not even need to know any math as long as you have a calculator! Although simple addition and subtraction is all that is needed to do it yourself. (Income-Expenses=additional payment to mortgage).
This report was posted on Ripoff Report on 08/11/2008 02:45 PM and is a permanent record located here: https://www.ripoffreport.com/reports/united-first-financial/internet/united-first-financial-jubilee-mma-money-merge-account-scam-cult-multi-level-internet-i-361710. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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