WASHINGTON The owner of an Ohio-based loan administrator, accused by the Consumer Financial Protection Bureau of deceptive marketing, says he is the victim of a misguided lawsuit by the agency.
In comments posted on the website for National Mortgage News (in response to the article "CFPB Sues Loan Administrator Over Deceptive Marketing"), Daniel Lipsky owner of Nationwide Biweekly Administration Inc. and its subsidiary Loan Payment Administration LLC said his company operates with integrity and "has absolutely nothing to hide."
The company provides a service that administers biweekly mortgage payments, claiming that consumers can save money on their mortgage as a result. But the CFPB alleges that more often than not, consumers end up paying more in fees for the service than they save by expediting their mortgage payments.
But Lipsky disputed the CFPB's charges in response to the article.
"NBA has a 97.3% customer satisfaction rate," Lipsky said, adding that "NBA recently analyzed their 100 oldest active customers and found that to mid-April 2015, they had saved a combined $3.5 million in interest charges with only a combined $128,000 in fees."
"NBA will soon be providing a detailed response to the CFPB allegations," Lipsky said.
In a statement announcing the lawsuit, the CFPB said "the defendants know that consumers will pay more in fees than they save in interest for the first several years in the program, and that many consumers will leave the program without saving any money at all."
The CFPB argues that the company's practices are in violation of the Telemarketing Sales Rule as well as federal prohibitions against "unfair, deceptive or abusive acts or practices."