Anyone familiar with the business "101 Financial"?

Sher – like the singer Cher asked:


My parents have signed up with a debt management program called "101 Financial". This company seems to make promises that are way too good to be true – and as the saying goes, it probably is. The trouble I am having with trusting this company is that the programs costs $3900.00 to join and you have to sign a confidentiality agreement not to disclose their "program methods". It also requires you to place your money into an account with them and then they or their bank partners issue you a line of credit whereby you pay your monthly bills or pay it with a credit card with a grace period. Anyone else think this sounds fishy? I think my parents may have been scammed. Their members claim to have reduced a 27-year mortgage to one year….if this is true, why isn't everyone in the nation doing it? PLEASE HELP!

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29 Responses to “Anyone familiar with the business "101 Financial"?”

  1. Sounds like a scam to me. Reducing a 27 year mortgage to 1 year is rediculous unless you could afford $15-20k/month as a payment (if the mortgage is around $200k). Who pays it? Where does the money come from? If it's too good to be true, it too often is.

  2. Wee_Willie_Winkie June 26, 2009 at 3:45 am

    Its a load of horse manure and you should steer your parents away.

    What they are trying to do is to get your parents to sign away their rights to speak out when this company rips them off..

    Your gut is right on this one… SCAM SCAM SCAM…

  3. If is was a scam then why is the better business bureau backing this company. And how is it that they are in the fortune 500 top 500 small businesses in the nation. Maybe you yourselves should look into it personally instead of going by here say

  4. 101 financial is one of the fastest growing companies in the US.. BBB Company with no complaints.. I paid my 4 year loan in 9 months. No Scam at all..

  5. Its not a scam. I,m a client of 101 Financial. If it was a scam why has the company received many awards from the Better Business Bureau, Bank of Hawaii and Inc.500 magazine. 101 Financial is an financial educational company. They have helped us to get our financial life together through banking education, instruction and personal coaching. They did not want to know any of my bank account numbers, savings accounts or Credit card numbers. My wife and I were in debt and close to filling bankruptcy. We have payed off over $100,000.00 in debt. We are part of a great company and they have saved our marriage and our home. We have a future and hope now.

  6. How are your parents doing since coming on the 101 Financial system?

  7. Jeremy Hopkins March 7, 2010 at 7:35 pm

    Aloha,

    I'm not actually in "101 Financial" but know many people who are. I am from Hawaii where 101 Financial is a big success. I am not sure where you folks get your information from, but I really think you should take another look. It works.

  8. Aloha,

    I've been a client of 101 Financial over almost 2 years. The financial stratagies that are taught are simply "GENIUS"! I came to a 101 seminar in Kona, filled out a free analysis. The report I got said I could payoff ALL my debt in 1yr 11mo. compaired to 21 yrs, I beat the 101 projection and paid off my debt in 9 months!…. I just bought a new home and I will be able to pay it off, in the next six years utilizing 101 techniques.
    If you do some HOMEWORK on 101 Financial, you will see they have won awards from the BBB, have ZERO complaints, won national awards from Inc. 500.

    And why you haven't heard of 101 Financial? Simple they spend no money in advertising…
    Their are thousands of people that will testify to similar experiences….

    I LOVE 101!

  9. I've. Been the program and I can say only positive. It helped me tremendously . It is Not a scam. There are reasons and results and only one matters. I have experienced the benefit s. I believe. In the program.

  10. It's not a scam. This is for people who are that stupid to LISTEN TO COMMEN SCENSE!. This company tells you to pay as much as you can towards your bills and dont save anything untill its paid off. DAA! HELLO. THIS IS COMMEN SCENSE ADVISE THAT WILL COST YOU 4,000 DOLLARS.

  11. Hi Sher,
    Thank you for looking after your parents, I totally understand your feelings as there are so many programs out there that might not be as ethical as 101 Financial. Can you please check on your parents to see how they are doing on our program and email with the update at: Alan@101financial.com.

    We want the best for each and every client of ours as they have paid us to do an Outstanding job. We also do not advertise to find new clients, all of our business comes from referrals from our happy clients. We are committed to teaching the basic fundamentals of personal finance such as Better Budgeting, Smart Banking, Debt Elimination and Credit Building. These very important financial fundamentals have not been taught in our school system and is badly needed. These principles work in a good or bad economy. The reason 101 Financial is successful is because each of our clients are successful. We spend hours teaching and guiding them thru the basics of personal finance. We help them to be more accountable to managing their money and understanding basics of personal finance.

    If there are other questions you have I would be happy to help.

    Alan Akina
    President
    101 Financial

  12. @Joe:
    I am on the program and i can honestly say it was a rip off!! It is not for everyone. It works for people who have high interest rate credit cards and people with bad credit because they are usually the ones who have super high interest rates. When i signed up, i was told that the banks work with financial 101 but i later found out that i was misled because the banks don't work with the company. My agent also stopped checking on my progress, or lack thereof. They say there are no complaints from BBB but why should there be when Financial 101 makes you sign documents to keep your mouth shut about diclosing anything about it, I mean they don't even tell you anything about it until you cough up the money to pay them. The system works for people in Hawaii because mostly everyone is on welfare and milking the system so they have the extra money to payoff their debt while stealing from hard working citizens. I know some people who are doing exactly that, they admitted that they learned it from their friends. But going back to the matter at hand, you should do more research before deciding to take this program on because it may not be for you. I wish someone cared enough to tell me that before I paid a lot of money for the mistake, and boy it was a very expensive lesson to learn. I wish I could get my money back.

  13. Dear Sher,
    I have been a customer of 101 financial for approximately 8 months and simply love the system! I hope that since you've voiced your concerns you have been able to have a lot of your questions answered and the best person to answer those questions would be Allan Akina who is the companies president. I cannot begin to tell you how much this company has helped me. Everyone will be able to pay off their debt within different amounts of time depending on your income and how much debt you have, etc. I will share with you my personal experience. It may sound unrealistic but I tell you that this is coming form someone who would never make something like this up. Within 11 days I paid the fee, paid off $8500 in credit card debt and still paid for all of my other expenses without lowering what I spent and without having to make more money. I still continue be able to make extra payments on my mortgage and when I get unexpected bills I don't wory like I used to because they have taught me some great fundamentals that I otherwise would have not known. To Joe, it's not as simple as just paying as much as you can toward your bills and don't save anything….because before this system I had nothing to save at the end of every month and had started using my credit cards for the bills that I didn't have enough money for. All I can say is the system works and I only wish that I had jumped on board sooner. If you follow the system, it works and you will not be disappointed! This is my promise.

  14. @Rico:
    I was approached by someone at work to use this system. When I looked over the paperwork, they DID want all kinds of banking & personal info. NO THANKS!!

  15. 'Better Budgeting, Smart Banking, Debt Elimination and Credit Building'… ok fine and dandy. There is a saying, 'Give a man a fish, feed him for a day. Teach a man to fish, feed him for life.'. So… what's next? ' Give Mr. Akina 4k, he teach you how to fish.'? This makes me sick. People who are considering 101 Financial… Google 'Dave Ramsey'. His debt busting techniques can be had for WAYYYYY less, not to mention it educates people to be smart with money as a way of life. Paying 4k to have someone tell you you this (the BASICS too!) is stupid. Wake up, people! Don't be so gullible! If this guy wants to help you conquer debt, why does he want your money, especially in this economy? Dave Ramsey has a 30 dollar book, that's ALL YOU NEED. The successful ones with this company have one thing – they had determination to get out of debt. With Dave Ramsey's advice, which is cheaper and probably SMARTER (and you can watch him every night to motivate you), they would have done the SAME EXACT THING….

  16. The unfortunate truth is that there are so many people out there looking to make a buck off of you that it's hard to tell what's honest and what isn't. 101 Financial is one of the honest ones.

    My wife and I have been on 101 Financial for about 4 years now. And while we haven't completely paid off all our debt (due to our own failings – like spending more than we should have here and there), 101 has definitely helped us. Yes, you pay a tuition for the learning you get through the system. But it's priceless knowledge. And it's not money you have to come up with out of your own pocket. They make it all work for you.

    We've had a lot of ups and downs in our lives and I can honestly say that if it wasn't for 101, our situation would not be as cozy as it is now. Over the 4 years we've been on the system, I was unemployed for 6 months. My wife was out for 4 due to illness. My sister ended up moving in with us which added to our monthly expenses. But despite all this, we managed to continually move upward because of what we learned through the system.

    It's not a miracle program. And it's not a one-shot deal. It requires work and dedication from those on the system. And yes, to some degree it's a lot of common sense stuff. But as Alan said, most of it is not taught to us ever in our lives and a lot of us have to learn the hard way. Is the system for everyone? Maybe not. But for those who actually want to invest in their futures and have the drive to do so, 101 is a fabulous learning experience that can help you to open a lot of opportunities for yourself.

    And by the way, I am a born and raised resident of Hawaii and am not, nor have I ever been on welfare. I work damn hard for my money and don't milk the system and the taxpayers. I'm an honest Joe with an honest Jane who both have "extra money to pay off their debt" because we've been properly taught the best ways to do so.

  17. @joe kamaka:

    Itʻs really sad that you think the program is only for people " high interest rate credit cards and people with bad credit" and for "people in Hawaii because mostly everyone is on welfare and milking the system so they have the extra money to payoff their debt while stealing from hard working citizens." For one: I personally know clients who did not have any debt when first getting on the system, which made them that more far ahead of the game. And second, I, myself is proudly from Hawaii and a working-tax paying citizen (thank you very much) and doing very well on the 101 system. Mahalo!

  18. @Sher:
    Your concern for your parents is valid, and I'm glad you asked the questions. I'd like to address a few of your concerns:
    #1-"The trouble I am having with trusting this company is that the programs costs $3900.00 to join and you have to sign a confidentiality agreement not to disclose their "program methods"
    YES THE PROGRAM HAS A TUITION. NOT ONE THAT COMES BACK FOR MORE, IT'S JUST A ONE-TIME TUITION. $3900 WAS THEIR TUITION, BUT THE TUITION CAN CHANGE ACCORDING TO ONES FINANCIAL SITUATION. CONSULTING SERVICES,N0N-DISCLOSURE AGREEMENT DOES HAVE A SECTION THAT COVERS THE CLIENT AGREEING NOT TO DISCLOSE THE PROGRAM METHODS. THIS IS NOT BECAUSE THESE METHODS ARE NOT EMPLOYED ANYWHERE ELSE BUT 101 FINANCIAL, BUT BECAUSE IF THEY FIND OUT THE TOOLS AND STRATEGIES AND IN TURN SHARE THOSE WITH OTHERS, THOSE "OTHERS" DONT HAVE THE BENEFIT OF HAVING A PERSONAL INSTRUCTOR TO HOLD THEIR HAND, THEREFORE POSITIONING THEMSELVES TO END UP IN A WORSE SITUATION THAN THEY WERE.

    #2-It also requires you to place your money into an account with them and then they or their bank partners issue you a line of credit whereby you pay your monthly bills or pay it with a credit card with a grace period.
    OUR PROGRAM DOES NOT REQUIRE THE CLIENT TO PUT MONEY INTO AN ACCOUNT WITH US. WE ARE NOT A BANK, SO WE HAVE NO "ACCOUNTS" IN WHICH TO HOLD THESE FUNDS. ALL ACCOUNTS ARE SET UP IN THE CLIENTS NAME, BY THE CLIENT, WITH THE ASSISTANCE OF THEIR INSTUCTOR AT THEIR FINANCIAL INSTITUTION OF CHOICE.

    As Alan, our president has said earlier, please take the opportunity to contact him personally if you still have any concerns.

    @Sadyee:
    Our banking and personal information are things like raw date, balances, interest rates, monthly payments, incomes, things of that sort. Never any account or social security numbers

    @ Joe Kamaka:
    I'm sorry that was your experience with 101. We do "work with the banks", but we cannot tell the banks what to do. If they dont favor the client, there is very little we can do to change their decision. Thankfully, we have a sister program for those who are denied at the bank that is called 99 Financial. It covers 2 reasons why most people get denied, negative cashflow and or a low credit rating. This program cost only a ONE-TIME $99. We will work with you to position you to become a 101 client down the line. You're right that, the system works for mostly people in Hawaii simply because HAwaii residents were the first to catch wind of it. We have now expanded into the mainland and clients are finding success as well over there. With that being said, the system WORKS when the system is being WORKED. The system itself is full proof…add in human tendancies and old conventional mindsets of how to bank, and one can easily fall off the system. That is why it is critical to keep in contact with your instructor. If your instructor dropped the ball and didn't hold up their end of the deal, I apologize for them, as that is never our intention for you, the client, to fall by the way-side. Also, if there were any changes in your personal financial situation, such as unemployment or loss of hours, that can throw a wrench in the system as well. That is when it is particularly important to have your instructor at your side. I suggest that you email our president Alan Akina @ alan@101financial.com to request a new instructor. Or you can contact me at skotare101@yahoo.com. I am willing to help you with what you are facing now. It's our goal to ensure each one of our clients are happy with the service they recieve…PERIOD. Many of us instructors go thru learning stages and also times in our lives where its not always easy to offer the best service to our clients, I will admit that I have experienced that myself, however, I/we have taken those experiences and continue to learn and grow, so that more people in Hawaii and beyond can experience financial peace of mind as we do.

    I'd like to say that when my husband and I first became clients back in Aug of 2008 I was leary about what our personal tuition was, but now I realize what the VALUE is in that cost. It will continue to pay dividends as we use and re-use that knowlege for all our future financial endeavors, we'd pay that fee annually if we had to. I always remember what I heard from a man…he said: "If someone gave you full lifetime access to a gold mine…would you argue the one time price you are asked to pay to for the shovel you will use in that mine?" That's the way we feel about 101 Financial, the small price we paid to learn this education is "manini" or quite small in comparison to what it will pay back to us in a lifetime.

    Have a 101-derful Day!

    Shantell Otare

  19. Please do not waste your hard earned morney on this "financial education". I am a banker in Honolulu and this company simply collects money from those who are in desperate need of help with paying their debt. Once collecting $3900 from you they provide you with information and banking techniques that are readily available to you at your local branch, with no charge. Everyone who has joined simply stands behind the system because they do not want to admit that they have been had like a fool. I encourage you to go to a local bank and ask how bill consolidation can help you and the best thing you can do for yourself is to know your interest rate and interest rate offers.

  20. Please do not join the 101 Financial that 3900 could go towards the bill you are already paying. Just commit to paying a few hundred dollars extra on one loan at a time. This program is not good if all you have is a mortgage. I wasted my money which could have gone towards my mortgage.

  21. I'm so glad I found this! This program is a rip off and we totally regret it. The person who sold us this now works two jobs to pay off their debt. So what does this say about the program. No one cared about us after they set us up. When I contacted the sales persons manager because we weren't seeing the results we were promised, his advise was to open another line of credit. I took back my life this year and started paying back what I owe the old fashion way, month by month. This program got us into more debt then when we started. We are college educated people who work, we just made a bad choice. With the Lords help, we'll be out of this mess by the first part of next year.

  22. @mike: Hello Mike. Can your bank educate me on banking techniques on how to save money (hundreds of thousands on a mortgage) in 'Interest' cost?? Probaly not. Why not?? Because thats how your bank stays open and thats how you get paid. Interest=Banks Profit.

  23. 101 and loved it June 30, 2011 at 6:02 pm

    Hi I was a recent client of 99 financial and I loved it! If it wasn't for my husband I would have paid the $3900 gladly to participate in the 101 financial program. My husband had many questions but because our instructor either couldn't answer them because she didn't know the answers or because she wasn't able to due to certain restrictions, this made him very uncomfortable with the entire program. We were her first clients and it showed. She sent us and hour and a half away from our home several times to setup an account that ended up being the wrong type. So now we have open accounts with 3 different banks with no purpose. Which was extremely frustrating since I had to take my child out of school and drag my husband to the bank after work when all they wanted to do was go home. Then every meeting we had with her was an inconvenience. They were held and hour to an hour and a half away from our home and late at night. Since our kids are young and we have no sitters available we had to take them with us and it was ALWAYS stressful on my husband and I. If our instructor had been more knowledgeable or willing to come to our home it would have helped ease my husbands fears about it. I still believe in the company and what it has to offer and if I can ever convince my husband to give it another try I DEFINITELY would because regardless of our previous instructor, I believe in the system. There's truth in it and I believe the system works!

  24. The best resource for everyone to find out about 101 Financial is reading what our students say: https://www.101financial.com/testimonials/

  25. I got onto the 101 system back in 2005 when 101 was first starting out. They have taught me nothing but PURE VALUABLE information that I wish all my family and friends were using. Even when life threw wrenches at me, i was still able to stay afloat and move towards my financial goals. I teach my children on a constant basis the mere basics about money smarts but i'm excited for them to be able to reach their financial goals even quicker than I did being that they are "101 Financial Kids"…..it's one of my greatest gifts to them…..which is a better financial future than I ever had. Look into it and don't be so hesitate. Sometimes you just gotta 'trust'……you won't regret it.

    Michelle
    Kauai, Hawaii

  26. I've worked as an advisor for a few years and can tell you a few people have mentioned this 'program' to me and all I can say is WOW to the zeal and enthusiasm they showed over it. The problem is, there's no 'secret' technique or anything special. Simple Time-value of money calculations showing you how much interest you pay over the life of a loan and how much you could 'save' by paying extra each month blah blah blah. Anyone with any financial education will know that a dollar today is worth more than a dollar tomorrow.

    Hmmmm and what would the 3900 fee be going to? Let's see If 100 people gave me $3900 today that's $390,000. Invest that or drop it in a interest-bearing account and pay out monthly payments of less than the amount they earn in interest. Hmmmm why do you need to deposit into a bank account that they can monitor and from what it sounds like limit your access to? Sure it's your money and they won't 'touch' it (or they'd go straight to jail) but if they convince you to willingly keep it in one place THEY can use it to earn interest/capital gains then pay you out a smaller amount. Hmmmm sounds exactly like how a bank earns money?? Except real banks are capitalized in the billions, federally insured to a certain amount, and don't cost you anywhere near $3900 to do the exact same thing.

    WAKE UP! Why aren't the successful, wealthy people doing this around the country? You can't really believe that they don't know can you? "The program is for people in debt with high interest rates" blah blah blah. Wealthier people have MORE debt than lower-income people simply because they can carry it and pay it off. That has NOTHING to do with the effectiveness of the program it's just that wealthier people can afford smarter advisers/friends and won't fall for this kind of crap.

  27. I did attend a 101 Financial seminar. The people there seemed very excited about the program, and I did notice a strong sense community at the seminar. I am a Hawaii resident and Hawaii in general has a strong sense of community, so that could be related to the program or could just be the natural disposition of the people attending.
    I am neither an advocate nor do I think 101 Financial is a scam. After attending the seminar, I made the decision this program was not suited for me and my family's financial goals.
    These were my reasons for deciding not to become a 101 Financial client
    1.) Everyone refers to it as the "system." But it was difficult to get detailed information about "the system." For me, especially now that I have a family, financial decisions have to be made with as much information as possible. As I explained "the system" to my wife after the seminar, she pointed out that there is a lot of information that is not discussed.
    2.) From what I gather, and again I did not join so I might not be fully informed, the system is:
    Pay all of your weekly/monthly paycheck towards your debt. Every penny your earn goes towards debt. This enables you to save on the interest you would have been paying towards the lenders.
    In the mean time, use a bank line of credit to manage your monthly budget items like food, insurance payments, entertainment, emergencies…etc.
    I can see how this would really work for some people and really backfire for others.
    Me personally, I had been following Dave Ramsey's plan for several years now. As a result, I have been debt free (minus the house) for about 3 years

    To sum it up, $3,900 is a lot of money. Yet it may be worth it to some who can change the way they handle money. The line of credit to live off of can be very tempting, but given the right support structure and educational system a person or family can use it responsibly, pay off their debt, and begin to build wealth or just enjoy a life of financial freedom.
    Just like building a house, fixing a car, or investing in the stock market, there is lots of information available, some of it is even free. Yet some people choose to hire a mechanic, a contractor, or a financial adviser, others want to do it themselves.

  28. thank you Henry ^^^ for your unbiased opinion that was most helpful to this girl considering 101 Financial. I actually never heard of 101 Financial until recently-2 days ago in fact, from my 11yr old. Since then I've been trying to do my homework and it's looking favorable, for me at least. I think you put it best though- although you already know how to fix something, you might still want to hire that contractor to do it for you instead.

  29. It's amazing what people consider a scam without researching the company. You listen to all the people that complain about AMWAY and about how it's a scam but yet it is the bench mark for all other network marketing businesses. AMWAY if FTC (Federal Trade Commission) approved, that regulated by the federal government if you didn't know. Plus it's created more millionaires than any other business except for Microsoft. But people still believe it's a scam and it's illegal. People will grumble and talk crap about anything. Read the complaints about Pepsi or Coke and even Wal-Mart, but does that mean it's crap or doesn't work. Remember this 98% of people will remain where they are (broke in debt paying month to month pay check to pay check). When someone finds something that works they will talk crap about it to attempt to bring you back to where they are because it's human nature that people don't like to see others succeed when they are failing. Hense talking crap about other businesses that work. Think about it.

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