The CFPB sued Nationwide Biweekly Administration, its subsidiary Loan Payment Administration, and its owner Daniel Lipsky for “allegedly deceptively marketing services that claimed to save consumers money” but “any actual savings were offset by high fees.” The CFPB alleged that Nationwide Biweekly Administration “charged consumers $49 million in setup fees between 2011 and 2014 for providing a service that administered biweekly mortgage payments.” As of February 2017, the case is ongoing.

• The CFPB filed a lawsuit against Nationwide Biweekly Administration, Inc., Loan Payment Administration and Daniel Lipsky in US District Court for the Northern District of California. [CFPB v. Nationwide Biweekly Administration, Inc., Loan Payment Administration LLC, Daniel S. Lipsky, case no. 3:15-cv-02106, filed 05/11/15]

• The CFPB sued Nationwide Biweekly Administration, its subsidiary Loan Payment Administration, and its owner Daniel Lipsky for “allegedly deceptively marketing services that claimed to save consumers money on their mortgage while any actual savings was offset by high fees.” The CFPB alleged that Nationwide Biweekly Administration “charged consumers $49 million in setup fees between 2011 and 2014 for providing a service that administered biweekly mortgage payments. The setup fees could be as high as $995 per account and included annual service fees of $84 to $101, eating away at any savings a consumer might experience from making additional mortgage payments on the biweekly schedule.”

The CFPB is “seeking redress for consumers that were harmed as well as civil penalties.” [Ian McKendry, “CFPB Sues Loan Administrator Over Deceptive Marketing,” National Mortgage News, 05/11/15]

• As of February 2017, the case is ongoing. [Enforcement Actions, “Nationwide Biweekly Administration, Inc., Loan Payment Administration LLC, and Daniel S. Lipsky,” Consumer Financial Protection Bureau, accessed 02/21/17]