Nationwide Biweekly Mortgage Payoff Letter

Now, my last post wasn't really about making money online, but about saving money online, which could be considered the same thing by Ben Franklin ("a penny saved is a penny earned").  And while some might argue that old Ben didn't know much about making money online, clearly some of his commentary does still ring true.

Today's post is about an "opportunity" that I was offered which could be considered, at best, a misrepresentation and at worst a scam.  It was a letter I received from Nationwide Biweekly Administration which sounded pretty good and I actually had the phone in my hand ready to dial when I thought, it is time to do a quick SCAM-check online.  When you enter the name of a company and one of the first listings that Google returns is the Ripoff Report, a warning bell should go off.  But the link I actually clicked on which did the best job of explaining what the Nationwide Biweekly Mortgage Payment offer is about, is this one. 

Funny, it was written back in 2003 and now 4 and a half years later, it just helped me out.  It's nice when the internet works for you, isn't it?   Okay, next post will be about something to make money online and whether it's a scam (or even a grossly exaggerated product) or a legitimate offering.

Comments

[Mike]

Thanks for the link. i thunk it over for a few minutes and realized it somewhat of a ploy to take some extra money from the homeowner. The program does not need to be used, only a self-disciplined person can do it for free. thanks scamhunter.
concerned homeowner.

[ron martini]

as the article you linked says, If you paid and extra $100.00 per month on a $110,000.30 year mtg with an interest rate of %5.5. you'd cut it down to 21.7 years without paying NBA a penny. thanks

[devi]

Thanks Every One for saving me from this Scam. while I was hold to get a service rep from Nationwide, I did a Google search and found about it. there is no free help on this planet besides internet forums. Thanks again.

[SHARON]

THANKS FOR THE WARNING. I WAS JUST GETTING READY TO FAX OVER MY SIGNED AGREEMENT.

[elisa milner]

i've been using nationwide biweekly and it's helped me to pay down my mortgage faster.
I don't have the discipline to do it myself.
I know I pay $58.50 a year for this service ($2.25 per payment).
But the biweekly plan helps me to get in an extra payment every year without really feeling it.

It works for me. They're quite clear about the fees, and not manipulative or dishonest so i'm not sure I would classify it as a scam. Just a service that's not free....

[Gandolf]

If you paid and extra $100.00 per month on a $110,000.30 year mtg with an interest rate of %5.5. you'd cut it down to 21.7 years without paying NBA a penny.

[Terry Eatherton]

I was also getting ready to fax over our agreement when a lightbulb went off...Thank God!

[Compare Mortgage Rates]

In order to compare mortgage rates, you can visit our site Lender411.com.

[Webber]

Great tip!! Thank you a lot. Just by sending in your annual bonus or so, you still save for free.

[Andrea Amundson]

Nationwide biweekly is out to STEAL YOUR MONEY!! I received a letter in the mail telling me I was enrolled and had so long to return the call in order to get their services. I assumed this was the company my mortgage broker was talking about (but it was NOT) and signed up without having to pay a service fee. Anyhow I canceled my service before they withdrew my first payment and they said I had to pay the service fee that was originally waived! Well the service fee totaled to $245 and I refused to pay it (ridiculous!!). Today they withdrew the money from my checking account without authorizing with me first!! This is fraud and should be punished by law!! DO NOT SIGN UP FOR THIS SERVICE UNLESS YOU WANT THEM TO STEAL YOUR MONEY!!

[Tina schauer]

Yes, someone is making money off of someone else's lack of organization. I too was going to call and inquire, but I knew a fee would be involved. I thought about it, decided I could handle this on my own, and googled to see if it was legit. I believe it to be a service like any other out there: you are paying someone else to keep on top of, and to better, your mortgage and financial security. I do it with my investments with a broker, but I can do it myself with my mortgage. I see both sides of this argument, frankly!

[Tina schauer]

oh, and who on earth is lucky enough to have a $110,000 mortgage?! damn you. : )

[Bev B.]

I almost went for this---but when Pam, was rattling off the saving - cutting my interest from 4.0 to even lower--something in the back of my mind said- if it sounds too good to be true--it usually is-
Then came the fee for this & she said we hold the payment & send it to your mortgage company; I then realized this was not my mortgage company I was talking to;
No way was I giving my permission to take payments from checking account;
I am so glad I checked this out on line first;

[john thompson]

i have never had a problem with nationwide biweekly mortgage. I just refinanced and had already had a payment taken out of my bank accountfor my previous mortgage. Nationwide biweekly mortgage refunded amount into my bank account in two days. I like having my 50% of my mortgage pulled from my bank account twice a month. I have never been late on a payment and Nationwide Biweekly mortgage has always been easy to work with! The company to stay away from is Quicken Loans-they are true scam artists!

[Mark]

It's funny how I can search around the web I have found articles on how biweekly programs are nothing but a scam or something that you shouldn’t need to pay someone to do because you can do it yourself. For the sake of these articles I am going to sum it up for you and assure you that biweekly programs are NOT a scam.
You see in a perfect little world we would all be able to jump right of bed into our workout clothes and hit the weights for 30 minutes. Then we could hurry up and cut the grass before heading into work. During lunch we could rush home and change our oil real quick. Then once the work day is finished we could clean the pool out and maybe even give the dog a bath and a quick trim. Sounds ridiculous doesn’t it? It’s a good thing that we have people that can actually help provide us with convenience, discipline, and structure so we can stay on track and not have to do everything on our own. This is how I see what a biweekly program can do. Of course this is something that every one of us can. How simple can it be to make an extra payment a year? Well I guess not that simple since less than 3% of Americans prepay their mortgages every year. Lets be honest, if anyone of us had extra money that equaled our mortgage payment I doubt that making an extra payment towards it would be the first thing on your list. So if you think that Nationwide Biweekly Administration is a scam then so is your personal trainer, lawn cutting service, guy that changes your oil, pool boy, and dog groomer. These are all helpful services that are provided for those you want them. If you would like to talk about scams go ahead and check how much interest you will be paying your bank once you pay off your loan. I guarantee you will be giving them thousands of dollars more then you would ever give a company that provides a biweekly program.

[Dick Sokker]

Weird how when I searched on "Nationwide Biweekly Administration" I couldn't find any discussion, but as soon as I add "legit?" to the search I get the appropriate forums.

Anyways, I'm not associated with NBA and don't think it's a scam. HOWEVER they could do a little better job explaining how they actually save you a payment. The agent I got couldn't or simply wouldn't. They were forthcoming on all the fees, hence the reason why I don't put them in the scam bucket.

That being said, if you're disciplined enough to make extra payments then there's no need for NBA. However, if you like to have someone else make the extra payment for you then it's a financial service no different then having an mortgage escrow account or even a credit card.

Will I use them? No, because I'm too cheap to pay the $42/year. Do I use other bi-weekly programs? Yes, my other bank loan (via Wells Fargo) offers a free program. But much thanks to everyone on the forum for flushing out all the details.

[Luke]

People its not a scam. Yes it will cost me $1822 over the next 17 years. Think of it as a convenience fee. They make my payments for me. They have to make money too. Its a paid service. The money is worth it to me because I am saving about $57,000 in interest and paying off my 138k loan in 17 years. If you have the devotion to make that extra payment each month, then do it your self. My life style and paychecks make a bi-weekly debit better for me to manage. Stop calling it a scan. Do your research america. Everyone wants to shout SCAM before they find out what is really going on. I hope one day we do not accept ignorance in this country.

[Michael]

This is not a scam. I have used Nationwide BiWeekly Administration for my mortgage since May 2003. I have never had a problem. My mortgage was for 90,000.00 in May of 2003. Today I owe 41,738.00 on the principle. The mortgage will be paid off in about 6 1/2 more years on a 15 year mortgage. I pay a fee for this service and I paid a start up fee. This has been well worth it. So if you're calling it a scam, you don't know what you are talking about. And no I don't work for NBA.

[rag]

thanks for the link! it makes total sense and the math is right! they make money off not only the fees involved, but also the interest accumulated from holding your money in the bank. those who tried to explain that this is not a scam should either go back to elementary math class or ask themselves where their consciences are before God! i just got a mail from them. it is amazing how people try to scam money from the innocents.

[Konsumentkredit]

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[make money online]

I find this system very useful. It is very true that everybody needs ideas to be success in their business whether it is offline or online and for to do this a good guidance is necessary, I think your post help out more in this matter.

[Nelson]

Multiple banks offer the same service for free!! you just got to ask. I just finished setting it up with my bank at no cost. It is a simple form in which you can choose how to have them pull your payments and how much extra you want to pay. No Nationwide Biweekly needed!

[JC]

It's a scam. You can do this yourself as long as you have a tiny bit of discipline. I got caught in it because they sent me an initial contact letter with my lender at the top, so I thought they were affiliated with my lender. Not so. These dirtbags sweep your account twice a month, hold your money and take a transaction fee on top of it! Sweet deal for them as they only make your minimum mortgage payment ONCE a month. I am about the contact the Attorney General's office in my state to see if they can help get me out of the contract. Shame on me for falling for it.

[Cindy]

Okay. What's wrong with them holding the money until your payment is due? You're not making interest off it...they have to run a business, and this is the way they do it. It clearly states on the letter I received that since there are more than four weeks in some months, it adds up to 13 payments per year as opposed to 12, which is paid in December of that year, hence, an extra payment, 100%, going completely to the principal of the loan, which saves you money. The charge for the draft...minimal if you consider what you're saving in interest over the term of the loan.

[Mortgage Franklin]

Hey, nice blog dear. I am working on a report in which all the banks giving loan for mortgage and in case of no return payment they made some hard decisions. What do you think about it. Is it right to not getting mortgage and vacate the house and take everything from the person.