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OneMain Financial and Class Action Lawsuit

OneMain Financial and Class Action Lawsuits: What You Need to Know

Ever heard of OneMain Financial? They’re a big lender in the installment loan market, offering financial products to folks who might not qualify for traditional bank loans. But recently, OneMain’s name has been swirling around something else: class action lawsuits. Have you been impacted? Let’s break it down.

In 2023, the Consumer Financial Protection Bureau (CFPB) hit OneMain with a hefty fine for what they say were deceptive sales practices [1]. The CFPB alleges OneMain misled borrowers in two key ways:

Deceptive Add-on Products: Imagine you’re applying for a loan and the lender pushes extra products like credit disability insurance. The CFPB claims OneMain may have made these products seem mandatory to get the loan, when in reality, they were optional [1].
Refund Runaround: So, you decide to cancel one of those add-on products within a promised “full refund” window. Great! But the CFPB alleges OneMain might not have refunded the full amount, including interest accrued during that period [1]. Frustrating, right?

This resulted in a $20 million settlement. Here’s the good news: some of that money will go towards refunds for affected borrowers [1]. However, if you think you were wronged by OneMain’s practices, there isn’t currently a class action lawsuit you can jump into.

But hold on, this doesn’t mean you’re out of options. If you believe OneMain misled you or engaged in unfair lending practices, you can consider:

Contacting OneMain Directly: Reach out to OneMain and see if they’ll address your concerns directly.
Filing a Complaint with the CFPB: The CFPB is there to protect consumers. Let them know about your experience [2].
Consulting with an Attorney: An attorney specializing in consumer finance law can give you personalized advice on your situation.

Remember, knowledge is power. By understanding these issues, you can be a more informed borrower and advocate for yourself.

FAQs

Is there a current class action lawsuit against OneMain Financial?

No, not at this time (as of March 5, 2024).

I think OneMain misled me. What should I do?

Contact OneMain, file a complaint with the CFPB, or consult with an attorney.

Will I automatically get money from the CFPB settlement?

No, the CFPB distributes funds according to specific criteria.

How long do I have to file a CFPB complaint?

You generally have six years to file a complaint .

What if I don’t have any documentation of my loan terms?

Start by contacting OneMain to request copies of your loan documents.

Should I keep quiet and hope for a future class action?

It’s generally best to address the issue directly. You don’t want to miss any potential deadlines.

By staying informed and taking action if needed, you can protect yourself and your finances.

Sources:

[1] Consumer Financial Protection Bureau: https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-installment-lender-onemain-to-pay-20-million-for-deceptive-sales-practices/
[2] Consumer Financial Protection Bureau: https://www.consumerfinance.gov/about-us/blog/so-how-do-i-submit-a-complaint/

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