Question Of The Day | Are Nationwide Biweekly Administration Plans Legit Or A Scam?

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 Nationwide Biweekly Administration 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 Nationwide Biweekly Administration.

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.  Nationwide Biweekly Administration

 

 

Is Nationwide Biweekly Administration A Scam?

Nationwide Biweekly Administration:

Many people are interested in saving money by manking biweekly mortgage payments, but have you been one of those people that thinks Nationwide Biweekly Administration is a scam?  Lets take a look and get a better understanding of how the Interest Minimizer plan works for you and how your biweekly payments are processed.

The interest minimizer from Nationwide Biweekly Administration debits your bi-weekly amount from your checking or savings account then remits payments bi-weekly or makes your monthly loan payment when it's due. Because there are 52 weeks in a year, that adds up to 26 bi-weekly debits which equals 13 monthly payments over the course of a year. The extra funds are directed 100% to the principal of the loan eliminating thousands of dollars in interest charges, cutting years off the loan and dramatically increasing your home equity.

We are the only administrator that remits payments bi-weekly for almost all types of loans and debts except mortgages. Based on the rules and restrictions set up by lending institutions, interest minimizer payments are processed in two different ways depending on the type of loan. As you will see in this example mortgage payments must be handled differently than bank payments. Loans such as home equity, personal loans, auto loans, credit cards, and student loans can be remitted bi-weekly and interest minimizer that is exactly what we do. With these types of debts, interest is calculated daily. Let's take a look at a sample savings of a $50,000.00 loan at 6% interest. With a $300 monthly payment or $150 every two weeks with out bi-weekly program your loan will be reduced from 30 years to 24.3 years and you will achieve interest savings of $12,282.00. For loans like mortgages, interest is calculated monthly, so we must remit monthly. Again, based on the lenders own processing restrictions that same example of a $50,000.00 at a 6% interest, with a $300 monthly payment or $150 every two weeks, this would reduce the loan from 30 years to 24.6 years achieving interest savings of $11,697.00. As you can see there was very little difference. Only $585.00 and a 3 month paid off difference, when we are forced by lender rules to remit monthly. But the great news for you is that the interest minimizer bi-weekly program works in your favor regardless of whether we remit payments bi-weekly or monthly. The interest minimizer program is easy, provides structure, and gives you the ability to save thousands of dollars in interest while building your equity much faster.

FAQ for Nationwide Biweekly Administration

Does my lender offer this program?
* A small percentage of lenders offer a bi-weekly program
* They can't offer the services on multiple types of loans
* Only on the loan you have with them
* We can administer all your loans in one easy place
* We work for you- not the lender!

Will my loan change id I sign up for the Interest Minimizer?
*Your loan doesn't change at all
* Your lender, interest rate, escrow-all stay the same!
* What if I sell my home or refinance?
* No problem!
* We handle all the changes for you
* Simply call our Customer Service Department or Email Us
* We administer to over 5,000 lenders
* No additional charge, unlimited benefit

Is there a limit to the number of loans I can put on the Interest Minimizer?
* There is no limit
* You can enroll as many loans as you want
* The more you enroll during the initial sign up the more you save!

Is there a penalty if I stop the program?
* Stop at any time
* No Penalty
* Restart at any time with no penalty
* You have a lifetime membership

Am I guaranteed to save money with Nationwide Biweekly Administration?
* 100% Savings Guarantee

Can I achieve the same results without the Interest Minimizer?
* You can try, but most find it too difficult
* Interest Minimizer is easier safer and more successful
* Provides a disciplines structure that's easy to stick with
* Very small percentage of home owners continue to prepay their mortgage at Interest Minimizer rates
* Interest minimizer survey results
* 80% made no extra payments
* 100 said it was a mistake to cancel
* The majority re-enrolled