Maryland Attorney General Brown Joins Multi-State Lawsuit Against OneMain Financial for Alleged Deceptive Lending Practices

Maryland Attorney General Anthony G. Brown, alongside attorneys general from 12 other states, has filed a lawsuit against OneMain Financial, Inc. and its associated entities. The lawsuit alleges that the company, which offers non-prime installment loans, has engaged in a widespread practice of charging consumers nationwide hundreds of millions of dollars through unlawful hidden fees and interest. The action seeks to recover these charges, impose penalties, and halt the alleged deceptive practices.

The complaint asserts that OneMain Financial, which operates 26 branches within Maryland, advertised loans with “clear, upfront terms.” However, the lawsuit claims that the company illicitly included insurance policies and other add-on products in these loans without the consent or knowledge of consumers. These hidden products allegedly increased the overall cost of the loans significantly, sometimes by hundreds or even thousands of dollars. According to the allegations, consumers were often rushed through loan documents that contained dense, fine-print details about these add-ons, with the company accused of concealing, misrepresenting, or even charging for products that borrowers had explicitly rejected. Furthermore, the lawsuit contends that OneMain misled consumers by encouraging them to refinance existing loans, only to then add further add-on products, fees, and finance charges by obscuring crucial terms of these refinances.

The coalition of state attorneys general is seeking restitution for consumers who were unlawfully charged for these add-on products or fees. Additionally, the lawsuit calls for penalties against OneMain Financial for alleged violations of state consumer protection laws. The attorneys general are also requesting a court order to prevent OneMain from continuing these alleged illegal practices. This order would also require the company to cease any collection actions related to these loans and remove any negative information that may have been reported to credit bureaus concerning loans that included the disputed add-on products.

Consumers in Maryland who believe they may have been victims of OneMain Financial’s alleged business practices are encouraged to file a complaint. Complaints can be submitted online through the Consumer Protection Division of the Maryland Office of the Attorney General. For those who need assistance with filing a complaint, the Consumer Protection Division can be reached by phone at 410-528-8662 or via email at mediator@oag.maryland.gov.

The states joining Maryland in this lawsuit include Colorado, Nevada, New Hampshire, New Jersey, New York, North Dakota, Oklahoma, Pennsylvania, South Dakota, Virginia, Washington, and Wisconsin.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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