Nationwide Biweekly Administration – legit or scam


Nationwide Biweekly Administration-legit or scam?

Posted in Legit or Scam? by Dallas on March 9, 2011
Tags: , , , ,

Today’s post is an explanation of articles you may have seen or run into when you do a search on Nationwide Biweekly Administration. It is amazing how a hand full of people, who have not fully researched a company, can post a blog on the internet and misrepresent them. I find these articles to be as believable as the national enquire and have very little solid information to back them up. With this said I have “legit” research to back up everything that has been said (see below) and to prove that Nationwide Biweekly Administration is NOT A SCAM.

First point I want to go over is the way NBA may market to potential customers. Some of you may have received a letter with the name of your lender on top that explains how NBA can save you money on your mortgage with their interest minimizer program. This letter is not intended to “trick you”. The reason why your lender is on the top of the page simply shows you that NBA administers the program to your lender as well as over 5,000 other lenders. If you so choose to call you will be connected to their customer service departments which can run a savings analysis report on your mortgage or any other type of loan you are trying to pay off early.

The second point I want to make is the trust issue with NBA. If there is any biweekly program company that you can trust with making sure your payment is applied properly and on time, it has to be NBA. Why do I say that? Well first they are one of the nation’s largest and most recognized independent processors. They are fully licensed, bonded, and registered with FinCEN – the Financial Crimes Enforcement Network – as a Money Services Business. On top of that they are also listed with Dunn & Bradstreet and the Better Business Bureau.  But what I really find interesting is they are the only biweekly company that has been independently audited by the C.P.A. Firm of Flagel, Huber, Flagel, & Company. As you can see in this video they earned a Gold Seal of Approval documenting that their savings estimates are accurate, funds are protected by FDIC Insured Banks, client’s funds are being remitted to lenders accurately and timely, and their program operates as indicated in contracts. To top off any more trust issues you may have, their corporate office is located in the State of Ohio and is audited annually by the State to ensure strict compliance to all State and Federal Regulations.  All payments are securely processed through the Federal ACH Banking System, and enjoy protection under Regulation “E” of the Federal Reserve.  Under Regulation “E,” funds debited from your account are protected against fraud or loss for a period of 60 days from the drafting date. You are completely protected & have nothing to worry about with NBA.

My last point that will be covered pertains to the 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 do everything ourselves. In the morning we could 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. 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 do. How simple can it be to make an extra payment a year? Well I guess not that simple since less than 1% 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 who 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.

I hope this sums up some of the articles you may have read and would love to see some POSITIVE comments on how using a biweekly program has help you out.

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29 Responses to 'Nationwide Biweekly Administration-legit or scam?'

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  1. Addai said,

    I’ve been using the service for over 4 months now and have had no problems. They are efficient and it’s a great feeling knowing that this is one less thing I have to worry about in my busy life! Whenever I call NBA’s customer service, they are efficient, respectable and seeks to assist me with any questions. This program is definitely NOT a scam!

    • Jenny said,

      This was helpful. My husband I have recently purchased a home. Anyway, yesterday I received the letter from NBA and I was very interested in it, but of course I turned to the internet to get reviews from people. And yes i have to agree the bad ones started to make me feel skeptical about the program. But after reading this, I think I am going to talk my husband into signing up for this program especially if it’s going to save a lot of money in the long run.And it doesn’t hurt that it’ll knock off a few years.

  2. Amanda said,

    I’ve been using their service for over a year and have had no problems whatsoever. My husband and I signed up so we could pay off our mortgage faster and pay a lot less interest over the life of the loan. We knew that we could do it ourselves by making extra payments, but it’s as M. Freeman states in the blog, we don’t have enough time or discipline to do it ourselves. I was skeptical when I first got the letter and I researched the company before calling. They gave me some options for loan pay off speed and amounts over the phone. Then I hung up and ran their numbers before signing up the next day. They were very happy to let me do so. There was no hard sell. I did ask quite a few questions of the person on the phone because I was trying to get to the bottom of how their company makes money. If you can get to the bottom of how a company makes money, you can usually uncover whether it’s a scam, or legitimate and whether it’s a good deal for you or not. The person on the phone was immediatley forthcoming about how the company makes money. There is an administration fee, but I found it to be an incredibly reasonable amount to save me from having to administer one more thing. That was my choice and I’ve had no regrets.

  3. Lynn. Terhune said,

    Just received the letter today, and sounds like a great plan! I checked out the company online, to make sure that it wasn’t a scam. However after following up on some positive comments it appears that it is legitimate. Planning to move forward with this today.

    • M.Freeman said,

      All information is disclosed in our contracts and over the call. We take much pride in making sure everything is covered with ever customer, that is why we monitor all calls to make sure that all information is being covered. Some can do the same payment schedule themselves but the majority will not, that is why it makes sense for people to set up a automatic system to do it for them. If you have any further questions or concerns feel free to give us a call. (800)317-1756 option 6 ext. 1113

  4. Steve Makofka said,

    I enrolled in NBA two months ago and they have yet to make a single payment to my loan holder, even though they are VERY efficient at taking the money out of my account. The first time I called them I was on hold for over 20 minutes. The second time I called their “system was down.” Their business office hours don’t even begin until 11:00. As of now I am behind on my mortgage and NBA is holding my money.

    • M.Freeman said,

      Customer update on 9/27/11:

      NBA has credited the money I requested back into my account, so I’m okay with them . The problem that I have is actually more Union Savings Bank. I’ll have to pursue my own resolution with them.

  5. Joel H. said,

    I have been using them for about 2 years now and no complaints. I agree with the above statements on their customer service and ease of use. My only recommendation is to check with your mortgage provider to see if they offer the same program for free. My current provider, Wells Fargo, has the same program as long as I open a checking account with them. I haven’t fully looked into it yet, but my guess is their check account is free so you save $4-$6 a month (I think those are the transaction fees… I could be mistaken) which adds up over a 30 year mortgage.

  6. Danielle H. said,

    I’ve been in the program for almost 5 years now with NO PROBLEMS. Customer service has always been friendly and able to help me with any updates/changes that needed to be made. They even did a conference call with me and my loan holder, when the loan holder was not applying the payments correctly. I would and have recommended this service to any of my friends who have recently bought a home.

  7. robertriz said,

    My husband and I recently bought a home and I knew that by making an extra payment a year will lower the amount of interest we will pay. When I wanted to come up with a plan with him he kept putting excuses and stating that maybe he wanted to wait 5 years before sending extra income. When we received the letter from nationwide he liked the idea and I convinced him to do it since it would serve the purpose I was trying to achieve. With nationwide we have an added bonus, we don’t have to worry about writting a check and buying post stamps and the representative said we will get a yearly account review to see the progress. Im happy, he is happy and I think that is the purpose of this program, to help all the procrastinators.

  8. Mark E. said,

    My wife and I have used NBA for many years and love how easy they are to work with. We’ve had no problems with their service and love seeing how much more quickly our equity has built up with the extra payment each year. It also helps with cash flow since one payperiod doesn’t get hit by an entire mortgage payment. We will continue to use NBA.

  9. Jose said,

    I just signed up for NBA services yesterday on a new mortgage refinance. I may have jumped the gun since I obtained a new mortgage from Load Depot.com, LLC. whom will end up selling the mortgage to a new servicer like CitiMortgage. Load Depot advised me to wait to see if my servicer will offer biweekly payments. Thus far, I’ve decided not to cancel the NBA service.
    One semirelated question, what about these companies (like one adverstised/owned by “John Cummuta” that claim a 30 yr mortgage can be paid in 5-7 years?

  10. Heather said,

    We’ve been using NBA since we bought our house 9 years ago. I’ve had no problems with them whatsoever. I love the fact that we make an extra mortgage payment every year – actually more than that, since our taxes are rolled in. We would never do this on our own. There are many other things we would spend any “extra” money on if it wasn’t happening through NBA. Our mortgage has gone from $128K to 86K in 9 years. can’t beat it!

    • Tony said,

      Dang, where did you buy your house for 128k, that is hecka cheap. BTW, NBA is awesome. I have been with them for two years.

  11. Stan said,

    thats fairs.
    keep us posted.

  12. michael said,

    I did some research on NBA and it is alarming that the top couple of google hits are negative blogs. While I may not be a statician, I do try to keep well informed and attempt to buy, sell, and use programs that make prudent sense (and save cents!). After reading the alarming blogs I began to panic and called directly to my lender. Maybe not as wise of a choice as the blogs led me to believe. Yes, most lenders will run similar programs, but they are just that… similar programs. My lender transfered me to another company which is not my lender, just in association with them. Very similar program and they are a third party as well. I am ok with paying a company small fees to do something I do not want to- nor have the time to do. But my point is this – personally, I would much rather have a 3rd party handeling this process who is NOT in association with my lender. This line of thinking was seeded by the idea that I actually have a seperate entity, or third party witness, to all of my loan transactions. Doesn’t it make sense to have a third party not in cahoots with my lender in the case that any questions regarding my payments arise. Seems to me to be a worthwhile benefit, and I don’t expect them to do this for free. For a very minimal charge, and a slight increase in payment, I am more than happy for NBA to cut my loan term in half!!!

  13. Diane said,

    I have been completely satisfied with NBA. My boyfriend asked why I didn’t just make an extra payment a year and I replied that I knew that I wasn’t disciplined enough to do so , therefore the fee was well worth it to me and will save me a lot in interest. I also refinanced since then to a lower interest rate, which lowered my monthly payment, but I am still paying the same amount as before so that my loan will be paid off even faster

  14. Vikki Oliver said,

    I have had a good experience with NBA until now. I would like to reuse this company for credit card payments, but cannot get back my initial amount of my mortgage payment up front. I have told that it will be deposited back into my checking account twice now and nothing has happened. I do wait on the phone about 30 minutes at a time and then am told again that it will be deposited and it is not. I would like to use this company, but I am now debating on their practices as if they are going to steal my hard earned money. How do I get my money back?

    • Dallas said,

      Vikki,

      I was informed that Cessili had contacted you and was able to assist you. If you have anymore questions or concerns please feel free to email me.

      Hope you had a safe holiday weekend!

      Dallas Smith
      Social Media Specialist
      dallas.smith@nbabiweekly.com

      • Vikki Oliver said,

        Thank you and appreciate the prompt response!

  15. shu said,

    I am aobut to enroll NBA biweekly program. I was wondering that what the fee will be.

    • Dallas said,

      Shu,

      A sales rep would need to run an analysis to be able to give you exact figures. The reason for this is because everyone’s program is different and requires different lengths of service. As brought out in the letter there is no upfront fee, it is a deferred fee. The analysis allows you to see the savings, the years eliminated, any cost, and the amortization of the loan so you can see the year by year breakdown.
      To have a rep run the analysis Just call the number (800)317-1756 and have your Biweekly and Reference ID off the letter. If you have anymore questions feel free to ask!

      Dallas

  16. Cathy said,

    I’ve used this program for almost 3 years now. So easy and you know exactly when your payments will be made. Also very easy to make changes as my mortgage also include my insurance and real estate taxes. I had to update my escrow amounts and did it online with no problems.

    Connecticut

  17. Richard said,

    I have been an NBA customer for 5 years now. I started with a $290,000 mortgage and in the 5 years I paid off $100,000. Unbelievable!!! This is an excellent program. Dont believe the negative adds. Also you dont have to wait on the phone to speak with a customer service rep, just shoot them an email of the changes you want and they will call you.
    Long Island N.Y.

    • Ranice said,

      Are you doing the Bi-Weekly or Advanced Minimizer plan?

  18. Rhnea Sluder said,

    We have been with them for 3 years now! We have had no problems so far!! I love it because I have no worries!! It automatically comes out of our account & we are on our way to pay off the house loan a lot sooner!! I wish I would have signed up when we bought our condo 17 years ago. It would have been paid off before we bought our house. Johnson City, TN

  19. Francisco said,

    I considered signing up but realized that this same service is offered by the mortgage lender for free through the online payment option. Do you advice clients to check their options with the lender since there are many auto payment options now? I do not see this information shared in this blog. If saving people money is truly the goal I would highly suggest providing this information to the potential clients as a way of ensuring that there is no scam.

    • Dallas said,

      95% of Lenders do not offer a biweekly program. Of the 5% of Lenders who do, there are some big disadvantages you should know about. “The Washington Post” discovered that, at least 43% of the time, lenders are not applying extra principal payments to the principal of your loan. Some Lenders hold onto the first extra debit until the second extra debit is collected! While they earn interest on your first extra debit, you lose out on valuable savings. And, when they do collect the second debit, they sometimes apply it as a PRE-PAYMENT, which causes a majority of your money to be paid toward interest instead of principal! That is the reason Nationwide Biweekly Administration offers an Annual Loan Audit. The Annual Loan Audit verifies that all extra debits have been correctly applied to the principal of your loan. According to “The Washington Post,” nearly 50% of mortgages are currently being miscalculated! Consumer Loan Advocates audited around 9,000 home loans and found errors in nearly half! The average refund owed was $1,588! The Annual Loan Audit provides written proof to verify your claims when you compare it to your Annual Statement that your Lender sends you.
      And, if you think about it, offering a biweekly program is a conflict of interest for Lenders. After all, they are the ones charging you interest on your loan, yet – at the same time – they are going to help you eliminate interest? If you lent me $100,000 would you teach me how to lower the amount of money I was going to pay you back?
      Our Biweekly Program eliminates the maximum amount of interest charges while providing lenders with specific instructions directing them to apply 100% of your extra money directly to principal as soon as it is received.
      What motivation do lenders have to offer, monitor, and correctly adhere to a program that dramatically reduces the interest they would normally earn from lending you money?


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