US EditionA Bipartisan Group of 13 Attorneys General Sues OneMain over Hidden Loan Add-Ons
The lawsuit alleges OneMain Financial charged hidden fees on loans to tens of thousands of subprime borrowers, seeking restitution, penalties, and an end to deceptive practices.
- On Monday, a bipartisan group of 13 attorneys general sued Indiana-based OneMain Financial, alleging the lender trapped borrowers with hidden loan add-ons through deceptive sales practices that violated state consumer protection laws.
- Investigators allege OneMain used a "bait-and-switch" process, pressuring borrowers to finalize loans until they said "no" three times while burying expensive add-on fees within dense, fine-print documents.
- In New Jersey, the company sold about $27 million in add-ons between 2021 and 2022, with customers paying an average of $826 for products including credit insurance and memberships similar to AAA.
- OneMain denied the allegations, calling the lawsuit "meritless" and stating it operates in "full compliance with all laws," while attorneys general seek full restitution and a court order halting the practices.
- Following the news, OneMain Holdings Inc. stock fell 12% on Monday, as the company operates more than 1,300 locations and faces renewed scrutiny over a previous $10 million settlement involving similar add-on issues.
23 Articles
23 Articles
NH among states suing OneMain for saddling subprime borrowers with add-ons, fees
NEW YORK - A bipartisan group of 13 U.S. state attorneys general sued OneMain on Monday, accusing the subprime lender of charging cash-strapped borrowers hundreds or thousands of dollars for "add-on" products they did not request and do not need,…
Washington AG joins lawsuit against OneMain Financial for deceptive lending
Washington Attorney General Nick Brown, joined by 12 other state attorneys general, has filed a lawsuit against OneMain Financial, Inc., alleging deceptive lending practices and seeking restitution, penalties, and changes to the company’s business practices.
OneMain sued by US states for saddling subprime borrowers with add-ons, fees
A bipartisan group of 13 U.S. state attorneys general sued OneMain on Monday, accusing the subprime lender of charging cash-strapped borrowers hundreds or thousands of dollars for "add-on" products they did not request and do not need, saddling them with hundreds of millions of dollars in extra costs.
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