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."
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