Nevada Attorney General joins bipartisan group of 13 attorneys general in lawsuit over hidden loan add-ons
Thirteen attorneys general are suing OneMain Financial for allegedly deceiving borrowers with hidden loan costs and unwanted add-on products.Summary
A bipartisan coalition of 13 attorneys general, including the Nevada Attorney General, has filed a lawsuit against OneMain Financial, alleging the company misled borrowers into purchasing unnecessary and costly add-on products like credit insurance and memberships resembling AAA. The lawsuit, filed in New York, claims that OneMain employees steered customers toward these products with deceptive claims about their necessity and cancellation options, impacting tens of thousands of borrowers and violating state consumer protection laws.
These add-on products, which increase the overall loan cost, include credit insurance (covering loan payments in case of death or unemployment) and membership services. The attorneys general argue that OneMain did not verify if consumers already possessed similar coverage through other providers. New York Attorney General Letitia James stated that OneMain “targets people who are already struggling financially, saddling them with hidden fees and misleading loans to trap them in even more debt.”
OneMain Financial disputes the allegations, claiming the issues were previously addressed in a 2023 settlement with the Consumer Financial Protection Bureau (CFPB), where they agreed to repay $10 million and pay $10 million in penalties. The company intends to “litigate this case vigorously” and prove its innocence in court. OneMain is a major U.S. non-bank installment lender specializing in loans for individuals with subprime credit scores.
(Source：Las-vegas Review Journal)