New Jersey Attorney General Jennifer Davenport, joined by a bipartisan coalition of 12 other state attorneys general, filed a multistate lawsuit against OneMain Financial, Inc. for allegedly hiding junk fees for add-on loan products in dense fine print, pressuring borrowers to accept unwanted products, and violating state consumer protection laws. The coalition seeks consumer refunds, civil penalties, disgorgement of profits, and a court order halting the illegal practices, correcting credit reports, and dropping collection actions related to the add-ons.
The bipartisan coalition of 13 state attorneys general seeks consumer refunds for unlawfully charged add-on products, civil penalties for state law violations, disgorgement of all profits derived from the alleged scheme, an injunction to halt illegal sales practices, an order requiring OneMain to withdraw negative credit reporting related to the add-ons, and dismissal of all collection actions and lawsuits against consumers for the add-on products.
In-house legal teams at consumer lending institutions should review loan agreements with borrowers to ensure all add-on products, fees, and terms are clearly disclosed in plain language, not buried in fine print, and that explicit, uncoerced consent is obtained for any add-ons. Vendor agreements with third-party add-on providers (e.g., credit insurance, membership programs) should be reviewed to ensure fee transparency, cancellation rights for consumers, and compliance with state consumer protection laws. Employee contracts and compensation policies should be audited to remove incentives that pressure employees to sell unwanted add-ons to borrowers. Additionally, credit reporting clauses should be updated to ensure accurate reporting and processes for correcting negative information related to unauthorized add-ons.
Entity
OneMain Financial, Inc.
Industry
Financial ServicesOfficial Press Release
https://www.njoag.gov/ag-davenport-sues-onemain-financial-for-packing-loans-with-add-ons-to-extract-hundreds-of-millions-in-junk-fees-from-consumers/
2026 0316 OneMain filed complaint
https://www.njoag.gov/wp-content/uploads/2026/03/2026-0316_OneMain-filed-complaint.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"OneMain Financial, Inc."
"For Immediate Release: March 16, 2026"
"today sued one of the nation’s largest subprime installment lenders, OneMain Financial, Inc."
"Office of The Attorney General"
"charged consumers junk fees for add-ons to the installment loans they sold. The complaint alleges that the products were frequently hidden from borrowers or snuck into loans without their consent."
"borrowers are also rushed through in-person loan closings and are provided with even less of an opportunity to adequately review loan disclosures in remote closings. These loan disclosures are often displayed in tiny, hard-to-read print. Even when borrowers spotted the add-ons and tried to decline, OneMain’s alleged policy was to continue to pressure borrowers until they explicitly said “no” three times."
$100K
New Jersey Attorney General Jennifer Davenport and the Division of Consumer Affairs announced a Consent Order with King Distribution LLC and 17 related retail smoke shops, resolving allegations that the companies illegally sold flavored vapor products in violation of New Jersey’s consumer protection laws. The Consent Order imposes a $100,000 civil penalty, requires reimbursement of $22,279 in investigation costs, and prohibits the companies from selling or distributing flavored vapor products in New Jersey. The enforcement action is part of New Jersey’s ongoing efforts to protect youth from flavored vape products, which have been permanently banned in the state since January 2020.
The New Jersey Bureau of Securities issued a Cease and Desist Order on April 30, 2026, against Titan Macro Finance for operating an investment fraud scheme via WhatsApp and Instagram that defrauded at least one New Jersey investor of $64,000. The scheme involved unregistered broker-dealer activity, fake trading profits, and undisclosed fees to access investor funds. The action was coordinated with the California Department of Financial Protection and Innovation, which issued a similar order against the entity for violating California’s Commodity Code.
New Jersey Attorney General Jennifer Davenport and the Bureau of Securities issued a public warning to state residents about fraudulent investment schemes proliferating on Meta-owned platforms including Facebook, Instagram, and WhatsApp. The alert details common scam tactics such as pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency offerings, and provides tips for residents to avoid victimization. No enforcement action against any entity was announced in this release.
New Jersey Attorney General Jennifer Davenport led a bipartisan coalition of 27 state attorneys general in submitting a comment letter to the Federal Trade Commission urging federal rulemaking to regulate hidden and deceptive rental housing fees. The AG also issued guidance clarifying New Jersey’s new $50 rental application fee cap, effective May 1, 2026, warning that deceptive fee practices may violate the New Jersey Consumer Fraud Act. No specific enforcement action against a named individual entity was announced, with enforcement of the fee cap set to begin May 1, 2026.
$2.0M
New Jersey Attorney General Jennifer Davenport announced a multistate settlement with NCL Bahamas, Ltd. (Norwegian Cruise Line) resolving allegations of deceptive sales practices and unfair cancellation, refund, and future cruise credit policies during the COVID-19 pandemic. The settlement requires NCL to pay $2 million to participating states, implement employee training and management approval processes for sales communications during disasters, and prohibits deceptive sales statements and prioritizing sales over consumer health and safety. NCL has already issued over $3 billion in refunds and future cruise credits to consumers nationwide related to the underlying allegations.
Ibelis Gonzalez, a 46-year-old Jersey City resident, was indicted on charges including second-degree theft by deception, second-degree impersonation/theft of identity, and third-degree false government documents. She is alleged to have used fake identification to obtain debit cards in six victims' names, stealing approximately $86,840 from their bank accounts between May and June 2024. The case is being prosecuted by the New Jersey Division of Criminal Justice, with potential maximum fines of $150,000 for second-degree charges and $15,000 for third-degree charges.