Washington AG Sues OneMain Financial Over Hidden Fees

WA Attorney General News Releases

Filed March 16th, 2026

Detected March 16th, 2026

Summary

The Washington Attorney General, along with 12 other states, has sued OneMain Financial for allegedly charging consumers nationwide hundreds of millions of dollars in hidden fees and interest through deceptive lending practices. The lawsuit seeks restitution for affected consumers and penalties for violating state laws.

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What changed

The Washington Attorney General, leading a coalition of 13 state attorneys general, has filed a lawsuit against OneMain Financial, Inc., alleging a widespread "bait and switch" lending scheme. The complaint asserts that OneMain deceptively packs high-cost installment loans with hidden insurance policies and other add-on products, inflating loan costs by hundreds or thousands of dollars. Consumers are allegedly rushed through loan documents, with add-ons buried in fine print or even charged to those who rejected them. Since 2019, OneMain has sold over $100 million in these add-on products to more than 200,000 Washingtonians alone.

This enforcement action requires immediate attention from compliance officers overseeing consumer lending operations. The lawsuit seeks restitution for consumers, penalties for state law violations, disgorgement of unlawful profits, and injunctive relief to prevent future illegal practices. This includes orders to withdraw negative credit reporting and abandon related legal proceedings. Companies should review their sales practices for add-on products, ensure clear disclosure, and verify that consumers are not being pressured or misled into purchasing unwanted items. Failure to comply with consumer protection laws can result in significant financial penalties and reputational damage.

What to do next

Review sales practices for add-on products to ensure clear disclosure and prevent deceptive packing.
Verify that consumers are not being pressured or misled into purchasing unwanted add-on products.
Assess current loan closing processes for compliance with consumer protection laws regarding disclosure and review periods.

Penalties

Restitution for consumers, penalties for violating state laws, and disgorgement of unlawful profits.

Source document (simplified)

FOR IMMEDIATE RELEASE:

Mar 16 2026

El procurador general Brown demanda a OneMain Financial por una presunta estafa crediticia

Attorney General Nick Brown and 12 other attorneys general today announced a lawsuit against OneMain Financial, Inc. and its related entities, alleging that the installment lender charged consumers nationwide hundreds of millions of dollars in hidden fees and interest.

The financial hit for Washingtonians is substantial. OneMain has sold more than $100 million worth of add-on products and entered into more than 200,000 loans with Washingtonians since 2019.

OneMain Financial advertises high-cost installment loans with “clear, upfront terms,” but it packs those loans with hidden insurance policies and other add-on products that inflate the cost of the loans by hundreds or thousands of dollars. OneMain rushes consumers through fine-print loan documents containing the dense terms and conditions of the add-ons. OneMain often hides the add-ons, sometimes misrepresents them, or even charges consumers who outright reject them.

“OneMain lures people in with promises of straightforward credit terms, but leaves Washingtonians saddled with extra debt they didn’t want and never agreed to,” Brown said. “Paying the bills is already a balancing act for many people across our state. That’s why I will do all I can to hold predatory lenders accountable and fight for the rights of consumers in Washington.”

The lawsuit alleges the following about OneMain’s bait and switch scheme:

OneMain does not advertise that it sells add-on products, so consumers who come through its doors have no reason to expect the company to push these products.
OneMain has written policies that purport to prevent unlawful add-on packing, but the company’s actual processes operate nothing like its written policies.
OneMain puts financial pressure on its employees to pack add-ons.
OneMain rushes consumers through a loan closing process in which its employees often control the computer screen that shows the loan documents. This does not allow the consumer time to review each page of the loan application as the employee scrolls through the contract.
OneMain buries the fine print that mentions the add-on products inside 50 pages of legalese, which OneMain prevents consumers from reading before accepting the loan contract.
OneMain often closes loans on smart phones, where already small print shrinks to an illegible size.
OneMain also misleads consumers when encouraging them to refinance their loans by tacking on add-on products and by hiding key terms. Brown and the coalition are seeking restitution for consumers who were unlawfully charged for these add-on products, penalties for violating state laws, and to release all unlawful profits. The lawsuit also seeks a court order preventing OneMain from continuing its illegal practices and ordering OneMain to withdraw any negative information reported to credit agencies that may impact its customers’ credit scores and to abandon any legal proceedings against customers related to the add-on loan products.

Any consumers who believe that they or someone they know may be a victim of the business practices of OneMain Financial should file a complaint with the Office of Attorney General online or by calling 1-800-551-4636.

This lawsuit is being led by the attorneys general of Pennsylvania and New York. In addition to AG Brown, the coalition includes the attorneys general from Colorado, Maryland, Nevada, New Hampshire, New Jersey, North Dakota, Oklahoma, South Dakota, Virginia, and Wisconsin.

A copy of the complaint is available here. A copy of Exhibit A showing screenshots from OneMain's website is available here.

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Washington’s Attorney General serves the people and the state of Washington. As the state’s largest law firm, the Attorney General’s Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington’s 39 counties. Visit www.atg.wa.gov to learn more.

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