US Equity Advantage membership (bi-weekly loan service)

[gsxr600k6]

So the dealer added this feature on my loan saying it would help me pay less interest and pay off the installment loan faster ($19700) I am seeing the documentation fee and it has a $399 membership fee) Are such services like this useful or such another way for dealers to make commission, do I really need to be making two payments a month thorugh a third party? Can't I just pay the bank twice a month? I would appreciate some answers as I would like to cancel the service.

[sccredit]

You need to see if there is a cancellation clause.  Sounds like a rip off to me.  

[Ragelog]

I agree sounds like a scam. Hopefully you can cancel and recoup. Make sure your loan allows early payoff without penalty then,  you can technically pay whatever frequency and amount as long as the minimum payment is reached by the due date.

[gsxr600k6]

So I called the company and cancelled the service, they said I wasn't charged anything so it remains to be seen.

"There are no upfront membership fees.  When you enroll with AutoPayPlus™, you become a lifetime member and cost of membership is $399. Other costs include the 95¢ fee to verify the bank account and routing information, and a service fee for each debit made to your account.  The service fee is $1.45 on all biweekly loan types, except Home mortgages, which have a $1.95 service fee per debit.  Debits made to match weekly pay cycles have a 95¢ service fee."

This is what it says on there website. I called the bank and i asked if I could pay twice a month and they said yes.

[Chris123nTx]

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@gsxr600k6 wrote:

So I called the company and cancelled the service, they said I wasn't charged anything so it remains to be seen.

"There are no upfront membership fees.  When you enroll with AutoPayPlus™, you become a lifetime member and cost of membership is $399. Other costs include the 95¢ fee to verify the bank account and routing information, and a service fee for each debit made to your account.  The service fee is $1.45 on all biweekly loan types, except Home mortgages, which have a $1.95 service fee per debit.  Debits made to match weekly pay cycles have a 95¢ service fee."

This is what it says on there website. I called the bank and i asked if I could pay twice a month and they said yes.

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wow they are a rip for sure. You need to check with your finance company/bank since they all can have their own policies on making additional payments, buy with a loan I have with my daughter at USAA, I pay three months ahead, and then also pay extra twice a month or so that goes just to the principle. 5 year loan paid off in three

Glad you could cancel that.