Consumer complaint received 04/13/2016 about Mortgage (Conventional fixed mortgage) with Nationwide Biweekly Administration, Inc. (VA).
Issue: Loan servicing, payments, escrow account

Complaint: I became a customer of Nationwide Biweekly Administration on XXXX XXXX, XXXX, with the goal of paying off my mortgage early, and accruing less interest throughout the life of the loan. NBA 's program would enable me to pay my mortgage off in 24.9 years, with more than {$40000.00} in interest savings. 

My first mortgage payment through NBA was debited on XXXX XXXX, XXXX. In XXXX XXXX, I received word that NBA lost its banking relationship, and therefore my account had been deactivated. NBA made my XXXX XXXX, XXXX mortgage payment to my lender, but suspended my account immediately thereafter. Because NBA suspended my service before a year had passed, NBA never actually made an extra payment to my lender as promised, and therefore during the time I spent as an NBA customer, they never helped me save any money, but rather cost me money in fees to set up and participate in their program. 

Since the XXXX XXXX deactivation of my account, I have received multiple pieces of correspondence - both through email and the U.S. postal service - indicating that the suspension of my account was only temporary, but that NBA expected to be back up and running, and therefore able to resume service with my account in the very near term. It 's now been more than 5 months since my account was deactivated, and NBA shows no signs of securing a new banking relationship that will enable it to resume service. 

Upon notification that my account was suspended, I immediately sought a reimbursement from NBA for the one-time set-up fee of {$930.00}, plus the {$80.00} in administrative fees I paid NBA, for a total reimbursement of {$1000.00}. I sought this reimbursement on the grounds that, based on NBA suspending my account before it ever made an extra payment toward my mortgage, it had failed to perform the service I had been paying it for - making extra payments toward my mortgage to ultimately save me money over the life of the loan. 

During conversations between me and NBA brokered by the XXXX, NBA repeatedly told me that they would ultimately be able to perform the service I 'd paid them for of making extra payments toward my mortgage, once they were back up and running with a new banking relationship. I repeatedly informed them that they had proven themselves an untrustworthy business, in losing their banking relationship and suspending my service through no choice of mine, and that I would never resume service with them, even in the unlikely even they did secure a new banking relationship. After multiple rounds of discussions brokered by the XXXX, NBA ultimately refused to reimburse me any money, and the XXXX closed my complaint case, considering it " answered '' but not resolved to the customer 's liking. 

The bottom line is, because my service was involuntarily suspended by NBA before NBA ever made an extra mortgage payment toward my account, they failed to hold up their end of our agreement to save me money, but instead cost me money, and I am owed a reimbursement for the set-up and administrative fees. 

In addition to NBA 's failure to hold up their end of our agreement, they also unethically and untruthfully market their services, and were ultimately sued by the Consumer Financial Protection Bureau. NBA was slick, untruthful, and not forthcoming about their one-time, non-refundable set-up fee during our set-up phone call. Had I understand this set-up fee, I never would 've become an NBA customer. Unfortunately, once I did become a customer, NBA actually cost me more than {$1000.00} and never saved me any money, because it never made an extra payment toward my mortgage. 

Again, I am seeking a reimbursement of {$1000.00} in set-up and administrative fees.

Company response to consumer: Closed with explanation