US EditionA Bipartisan Group of 13 Attorneys General Sues OneMain over Hidden Loan Add-Ons
The lawsuit alleges OneMain Financial charged hundreds of millions in hidden fees by bundling costly add-on products, affecting tens of thousands of subprime borrowers, states say.
- 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.
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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.
Personal loan company collected millions in hidden fees from customers, according to lawsuit filed by 13 states
The New Jersey Attorney General’s Office and multiple other states are suing an Indiana-based loan company over allegations that it charged millions in “junk fees.” OneMain Financial, a subprime personal loan lender headquartered in Evansville, Indiana, is accused of selling exorbitantly priced loans and charging customers hundreds of millions of dollars in hidden fees, according to the lawsuit.
OneMain Financial sued by 13 attorneys general over hidden loan add-ons
A bipartisan group of 13 attorneys general sued the financial company OneMain Financial on Monday, alleging the company placed unwanted additional products and other hidden costs on its loans that led to higher costs for its borrowers.
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