Were You a Victim of OneMain’s Deception?

Installment lender defrauded 25,000 customers

Andy Spears
3 min readJun 1, 2023
Photo by The New York Public Library on Unsplash

A short-term installment loan can sometimes be a lifesaver. Or it can seem that way.

You need some cash for an unexpected expense — not just a relatively small payday loan, but a few thousand dollars.

Maybe your credit isn’t great, but you have reliable income and just need some money to bridge a gap.

Enter companies like OneMain Financial. Catering to the “subprime” market, lenders like OneMain offer relatively short-term loans (usually paid back in 2–3 years) at what are usually double-digit interest rates.

Expensive? Yes! But cheaper than a payday loan and with more cash available up front.

Companies like OneMain often attempt to sell you a range of add-on products you don’t need — like credit insurance, a life insurance policy, etc.

Now, OneMain is facing a fine for using deceptive practices to get customers to sign-up for add-on products and then refusing to provide full refunds when customers seek to cancel them.

Here’s more from NewsBreak:

A Consumer Financial Protection Bureau (CFPB) investigation found that the company repeatedly deceived consumers into believing that certain add-on…

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Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .