Wisconsin Attorney General Josh Kaul and 12 other state attorneys general have filed a lawsuit against OneMain Financial, alleging the lender charged consumers hundreds of millions of dollars in hidden fees and interest through add-on products.
According to the complaint, OneMain advertises installment loans with clear terms, but allegedly adds insurance policies and other products that increase loan costs by hundreds or even thousands of dollars. Officials say consumers are often rushed through loan documents filled with fine print, sometimes without enough time to review the details.
The lawsuit also claims the company pressures employees to include the add-ons, hides key information within lengthy contracts, and sometimes charges consumers for products they did not intend to purchase.
Attorney General Kaul says consumers should clearly understand what they’re paying for and shouldn’t be charged for add-ons they didn’t agree to.
The lawsuit is seeking restitution for affected customers, financial penalties, and a court order preventing the company from continuing the alleged practices.
Consumers who believe they may have been affected are encouraged to file a complaint with the Wisconsin Department of Financial Institutions.
The lawsuit includes attorneys general from Wisconsin and 12 other states across the country.
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