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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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24 thoughts onCFPB fines OneMain $20M to resolve claims over its add-on product sales, refund practices
ADD ME
When One Main finance my car loan I had to purchase a roadside assistance package which cost me around 500.00 in order to get the loan
I’ve had a loan with onemain financial for about 4yrs now. I swear it seems like when I’m about to pay it off. I’m Bombarded with extra fees it seems like I will never finish paying it.. my pmts.. Are 200.00 a month. The Amount is not really going down . Ive been paying it forever .also when I first got the loan. I signed up for automatic withdrawals. Well, 2 days later I had Unauthorized purchase online from out of town .that wasn’t me. Onemail financial was the only place I had given my bank info to. I wasn’t able to verify how that happened though. So had to change my bank info .
One Main sent a company paid Financial R*apist (a lawyer specializing in destroying finances) from Oregon to FALSIFY DOCUMENTS in order to get a judge to grant them money they were NOT owed as I PAID THEM THE FULL AMOUNT OF THE LOAN. If any lawyer can get this corrected, please contact me.
I had a couple of loans with one main as well as spring leaf!!! Please add me!!
They robbed me as well with adding extras
I had a loan with Onemain.. It is finally paid… To get the loan I had to sign up for legal aid, gap insurance, towing insurance, dog insurance I didn’t even have a damn dog… This place is crazy as hell… I’m glad they lost maybe they will think twice before preying on people who are down….,
My name is Vivian Mendenhall. I have a loan with One maine financial. I filed for the loan in selm Alabama. Ms. Michelle is the over see er there and she was so rude . She evidently encourage her workers to contact customers . They called me on a regular basis asking me to take out a loan. They never added my gap insurance to the policy when I refinanced around 2021. I was treated horrible in that branch office.
I called Ms. MICHELLE office in November to get a copy of the last time I had Gap insurance. The closed policy has a date of 7/19/19. Ms. Michelle screamed in the background it’s closed. As I was talking to one of her workers I’m alleging that the gap insurance was not added to my new loan of 2021 on purpose. Even after I asked them to add it to my new loan. If anyone had a loan of $10,000 they should have added to 2021 loan at my request.
Respectfully,
Vivian Mendenhall
I got a loan with One Main Financial back in November 2022. The Rep I worked with set up my monthly payments to be autopay but it looks like instead of 1 monthly payment being taken out each month, every statement shows that $111.58 was deducted from my checking account every 2 weeks for the last year (totaling $2,677.92) my loan amount owed has barley budged and it’s showing I gave late fees owed too which is impossible because he set up the autopay for me. It maybe went down $500 over the last year even though I paid almost $3,000 towards $7,000 loan and it’s saying I owe $6,500 still???