Quick Answer: The U.S. Supreme Court declined to hear an appeal from Nationwide Biweekly Administration, ending a decade-long legal battle over the company’s “Interest Minimizer Program.” The CFPB accused the company of deceptive marketing — charging customers a $995 setup fee plus annual fees for a biweekly mortgage payment service that the agency said cost most consumers more in fees than they ever saved on interest. The $7.93 million civil penalty and permanent injunction now stand.
Expert Context: I’ve been helping people with debt since 1994, and biweekly mortgage payment programs are one of those things that sound brilliant on paper but often cost more than they’re worth. The math is real — making 26 half-payments per year does equal 13 full payments, which does pay off your mortgage faster. But you don’t need to pay someone $995 plus annual fees to do it. You can make one extra payment a year on your own for free. This case is a textbook example of a company charging a premium for something consumers can do themselves.
What the CFPB Found
The Consumer Financial Protection Bureau filed its complaint against Nationwide Biweekly Administration (NBA) in 2015, alleging the company violated the Consumer Financial Protection Act through deceptive marketing of its “Interest Minimizer Program.”
The program charged a $995 setup fee plus annual processing fees of $83 to $101 for a service that converted customers’ monthly mortgage payments into biweekly payments. The CFPB found that the company knew most customers would pay more in program fees than they would ever save on mortgage interest.
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
In the latest issue (Sep 16): The truck was $28,999 online. At the desk it’s $31,400. As of yesterday, the FTC says the ad was the lie.
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Only 25% of customers stayed enrolled for four or more years — the minimum timeframe needed to break even on fees versus interest savings. The company operated from 2002 to 2015, serving over 135,000 customers and collecting approximately $49 million in setup fees during a four-year window alone.
The Legal Timeline
- 2010: Ohio Attorney General Richard Cordray (who would later become the first CFPB director) investigated and settled with the company
- 2015: CFPB filed its complaint; four major banks terminated relationships with the company, forcing it to close
- 2017: Federal court imposed a limited injunction
- 2024: Lower court imposed a permanent injunction and $7.93 million civil penalty
- 2025: Ninth Circuit Court of Appeals upheld the ruling
- March 2026: Supreme Court declined to hear the appeal — no reason given
Why This Matters for Consumers
Biweekly mortgage payment programs are still marketed today by various companies. (I’ve covered complaints about these services before — see my review of Paymap and LoanCare complaints, another biweekly payment company that generated consumer concerns.) The underlying math is legitimate — making an extra payment per year does reduce your mortgage term and total interest paid. But paying a company hundreds or thousands of dollars to do something you can accomplish for free is the definition of an unnecessary expense.
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Common belief: “You need a special program to make biweekly mortgage payments.”
Reality: You can achieve the same result for free. Simply divide your monthly mortgage payment by 12 and add that amount to each monthly payment. Or make one extra payment per year toward principal. Either approach produces the same interest savings without a $995 setup fee or annual processing charges. Some lenders even offer free biweekly payment options if you ask.
Before paying for any debt reduction service: Run the contract through the Contract Decoder first. It’s free — and it will help you spot whether the fees outweigh the savings before you commit.
The Bottom Line
The Supreme Court’s refusal to hear this appeal means the $7.93 million CFPB penalty stands. Nationwide Biweekly Administration charged 135,000 customers nearly $1,000 each for a service that most never benefited from — and that anyone can replicate for free by making one extra mortgage payment per year. If someone offers to “save you money” on your mortgage for a large upfront fee, do the math first. The savings are real; the fee is the scam.
Frequently Asked Questions
What is a biweekly mortgage payment program?
A biweekly mortgage payment program converts your monthly mortgage payment into payments made every two weeks. Since there are 52 weeks in a year, you make 26 half-payments — the equivalent of 13 full monthly payments instead of 12. That extra payment goes toward principal, reducing your loan term and total interest paid over the life of the mortgage.
Can I set up biweekly payments for free?
Yes. You can achieve the same result without paying anyone by adding 1/12 of your monthly payment to each month’s check, or by making one extra payment per year directed toward principal. Some mortgage servicers also offer free biweekly payment options. Contact your lender to ask about their options before paying a third party.
What did the CFPB find was deceptive about this company’s marketing?
The CFPB alleged that Nationwide Biweekly Administration knew most customers would pay more in fees ($995 setup plus annual charges) than they would save in interest — because 75% of customers dropped out before reaching the four-year break-even point. Marketing the program as a money-saving service when the company’s own data showed most customers would lose money was the basis of the deception claim.
What does the Supreme Court’s denial mean?
When the Supreme Court declines to hear a case (denies certiorari), it means the lower court’s ruling stands. In this case, the Ninth Circuit’s decision upholding the $7.93 million penalty and permanent injunction against Nationwide Biweekly Administration is now final. The Court did not provide a reason for its denial, which is standard practice.
Is Nationwide Biweekly Administration still operating?
No. The company ceased operations in 2015 after four major banks terminated their relationships with the firm following the CFPB’s complaint. The permanent injunction bars the company and its founder, Daniel Lipsky, from future violations of the Consumer Financial Protection Act.
Sources: National Mortgage News — Supreme Court Rejects Nationwide Biweekly Mortgage Petition, March 2026.
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