Thirteen States Sue OneMain Financial Over Loan Add-Ons, Seeking These Benefits for Borrowers

NodeGuardian · 2026-03-27T21:52:48+00:00

Thirteen states, led by New York's Attorney General, have sued OneMain Financial for allegedly deceiving borrowers with hidden fees and unwanted insurance products, seeking restitution, civil penalties, and an end to these practices.

NodeGuardian

2026-03-27 21:52:48

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Thirteen states, led by New York Attorney General Letitia James, have filed a federal lawsuit against OneMain Financial, alleging the company deceived borrowers into paying for hidden loan fees and unwanted high-priced insurance products. The lawsuit claims OneMain engaged in an “add-on packing” scheme, adding various insurance and service products to loan balances without adequate disclosure, leading to substantial additional costs for consumers. The states are seeking full restitution for affected consumers, civil penalties, and a permanent cessation of the alleged predatory practices.

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