Summary
A group of 13 state attorneys general filed a lawsuit against OneMain Financial, claiming the company added hidden costs to loans. The lawsuit alleges that OneMain made borrowers purchase extra products without clear information, leading to higher loan costs.
Key Facts
- 13 state attorneys general sued OneMain Financial on Monday.
- The lawsuit claims OneMain added unwanted products to loans, increasing costs.
- OneMain allegedly misled borrowers by making them think added products were necessary.
- The affected products include credit insurance and home and auto memberships.
- OneMain is accused of violating state consumer protection laws.
- OneMain faced similar issues and settled with the Consumer Financial Protection Bureau in 2023.
- OneMain agreed to repay $10 million to consumers and pay $10 million in fines in 2023.
- OneMain primarily offers loans to people with subprime credit scores.
