OneMain CFPB fines overview:
- Who: The Consumer Financial Protection Bureau (CFPB) has ordered lender OneMain Financial to pay $20 million in penalties.
- Why: The CFPB says the company failed to refund interest charged to customers who canceled their purchases within a “full refund period.”
- Where: The CFPB is an agency of the United States government.
- What are my options: Try Credit Karma for alternative lending options.
The Consumer Financial Protection Bureau (CFPB) announced it has ordered installment lender OneMain Financial to pay $20 million in fines and redress for failing to provide proper refunds to customers.
The announcement was made May 31 on the CFPB website. According to the CFPB, OneMain Financial failed to refund interest charged to 25,000 customers who canceled purchases within a purported “full refund period.”
The CFPB said the company also deceived borrowers about needing to purchase add-on products to receive a loan, it said.
As a result, OneMain will be forced to pay $10 million in refunds to consumers it harmed, and an additional $10 million penalty to the CFPB’s victims relief fund, the bureau said.
“OneMain pressured its employees to load up its loans with extra charges through false promises of easy cancellation with full refunds,” CFPB Director Rohit Chopra said. “We are ordering OneMain to refund borrowers it cheated and to clean up its business practices.”
Employees were expected to upsell on every loan, CFPB says
According to the CFPB, OneMain is one of the largest non-depository personal installment lenders in the United States, with a nationwide network with more than 1,400 branches across 44 states.
The company offers loans and makes extra profits by upselling borrowers with products such as roadside assistance, unemployment coverage and identity theft coverage, it said. However, the CFPB said, OneMain expected its employees to upsell borrowers on every loan.
This pressure saw salespeople tricking borrowers into signing up for optional products, the CFPB said. The company also kept $10 million in interest charges despite a “full refund” policy, it said.
As part of the CFPB order, OneMain is required to adjust its cancelation policies and provide redress to consumers as well as $10 million in penalties, which will be deposited into the CFPB’s victim relief fund.
The CFPB was also in the news after it recently disclosed it suffered a data breach it says may have compromised sensitive information in consumer accounts from a number of financial institutions.
What do you think of the allegations against OneMain? Let us know in the comments.
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33 thoughts onCFPB fines OneMain $20M to resolve claims over its add-on product sales, refund practices
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I have OMF and they are the most deceptive Financial Institution I have ever dealt with. They add charges upon charges to inflate your loan so that you cannot even make a headway and they keep you locked in the loan by holding your title . I went from just a 9k loan to an 18k loan in a mater of a couple years ever with paying all my high payments because they only put 1/3 of the payment if that on the principal and the rest on the extremely high interest rate they charge (45.99%). So it just keeps inflating. They are criminals
I had a one main loan and they had my title to my car long short my car was a total loss my insurance company paid them and then the gap insurance paid the rest loan story I was told by 2 ladies if I paid off my loan I would get a refund well on my account the interest refund went to my loan and then they charged me 50 and when I was looking they said I had interest bearing loan but when I looked on my documents precomputed loan was checked this company is a bunch of liars and they will try and kept every penny
We have had issues with Onemain. And would like to included in on this suit. They are awful especially the ones at the platteville wisconsin branch.
I have been a victim of OneMain’s aggressive debt collection practices, unconscionable interest rates and late fees, deceptive practices when selling the loan, and many other unfair practices surrounding the loan. I now have a judgment against me. I am trying to get the case reopened but I am now working uphill.
Please add me also! The ugly person named Angie in your Fremont Ohio branch is simply an awful miserable person! Got the unemployment insurance and then they refused to pay when I got payed off from my job
I am currently a One Main financial customer, I’m pretty sure I was signed up for Unemployment Insurance & maybe Disability Insurance also, I been with this agency for at least 4 1/2 years.
One Main mislead and deceptively said with my loan I had to have add on like Life Insurance and Disability Insurance, Roadside Assistant and other stuff added to my contract. Well when I became disabled the company they had Disability Insurance through made payments until they knew they would be paying the remainder of loan off then they denied my disability claim and sued me now have a judgement because they kept rescheduling the trial date and I wasn’t aware of new date until judgement was entered in court and I just found out about it. They also had 3 vehicles as collateral they gave me back two titles but not the third title and that car is on my parents property that needs moved off of it and can’t get a hold of Dobberstein Law Firm since they are who sued me for One Main to resolve this and let them know they need to either give me back the title or come get the car off the property. I want reimbursed for the payments and pain suffering they put me through by push on adds that had no meaning behind it and the interest they accumulate off of it. Judgement removed or vacated.