I was offered a bi-weekly payment option when I bought my last house. As I recall it knocked off about 6 or 7 years of payments on a 30 year loan.

If the lender offers that option, then yes, it works.  But you have to pay 24 times per year.  You can't arbitrarily select to do it or not on your own. 

If it's some service or software problem then it's bull.