OneMain Financial sued by 13 attorneys general over hidden loan add-ons
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The Bottom Line
Thirteen attorneys general sued OneMain Financial for secretly adding hidden fees to loans.
How This Affects You
If you have a OneMain loan, you may have paid for unwanted services without realizing it.
AI Summary
A bipartisan coalition of 13 attorneys general filed a lawsuit against OneMain Financial on Monday, accusing the lender of secretly adding unwanted products and hidden fees to customer loans. The legal action alleges these practices artificially inflated borrowing costs for consumers who may not have realized they were paying for additional services they didn't request or need. OneMain Financial is a major consumer finance company that specializes in personal loans, often serving borrowers with limited credit options who may be more vulnerable to predatory lending practices. The multistate lawsuit represents a significant coordinated effort by state prosecutors to crack down on what they view as deceptive lending practices in the personal finance industry. If successful, the case could force OneMain to change its lending practices and potentially pay damages to affected borrowers.
What's Being Done
A multistate lawsuit could force OneMain to change practices and pay damages to borrowers.
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