FOR IMMEDIATE RELEASE
Media Contacts
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410-576-7009
BALTIMORE, MD – Attorney General Anthony G. Brown’s Consumer Protection Division, and 12 other state attorneys general, announced a lawsuit against OneMain Financial, Inc. and related entities (OneMain), alleging that OneMain, a non-prime installment lender, charged consumers nationwide hundreds of millions of dollars in unlawful hidden fees and interest.
With 26 branches operating in Maryland, OneMain advertises high-cost installment loans with supposedly “clear, upfront terms,” but it is accused of unlawfully packing those loans, without consumers’ consent or knowledge, with insurance policies and other add-on products which inflate the cost of the loans by hundreds or thousands of dollars. Attorney General Brown alleged that OneMain rushes consumers through fine-print loan documents containing the dense terms and conditions of the add-ons and hides the add-ons, misrepresents them, or even charges consumers who outright reject them. Further, OneMain is accused of misleading consumers by encouraging them to refinance their loans, then tacks on additional add-on products, fees, and finance charges by hiding key terms.
“Our case claims that OneMain promised Maryland borrowers clear, upfront terms — then buried hidden fees and unwanted add-ons in the fine print to squeeze hundreds or thousands of dollars out of them,” said Attorney General Brown. “We’re filing this lawsuit to hold OneMain accountable and put money back in the pockets of the people they misled.
With this lawsuit, Attorney General Brown and the coalition are seeking recovery of amounts consumers were unlawfully charged for add-on products or fees, as well as penalties for violating state laws. The lawsuit also seeks a court order preventing OneMain from continuing its illegal practices and requiring OneMain to both cease any collection actions and remove any negative information reported to credit agencies regarding loans with these add-on products.
Any consumers who believe that they or someone they know may be a victim of the business practices of OneMain Finance should file a complaint with the Consumer Protection Division at the Office of Attorney General online. For assistance in filing a complaint, call 410-528-8662 or email [email protected].
Along with Maryland, joining in this lawsuit are the attorneys general of Colorado, Nevada, New Hampshire, New Jersey, New York, North Dakota, Oklahoma, Pennsylvania, South Dakota, Virginia, Washington, and Wisconsin.
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