Maryland AG Sues OneMain Financial for Hidden Fees

AG: Maryland News

Filed March 16th, 2026

Detected March 17th, 2026

Summary

Maryland Attorney General Anthony G. Brown, joined by 12 other state attorneys general, has filed a lawsuit against OneMain Financial, Inc. The suit alleges that OneMain engaged in a bait-and-switch lending scheme, charging consumers nationwide hundreds of millions of dollars in unlawful hidden fees and interest through add-on products.

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What changed

Maryland Attorney General Anthony G. Brown, along with 12 other state attorneys general, has filed a lawsuit against OneMain Financial, Inc. and its related entities. The lawsuit alleges that OneMain, a non-prime installment lender, engaged in a bait-and-switch scheme by unlawfully packing loans with insurance policies and other add-on products without consumer consent, significantly inflating loan costs. The AGs claim OneMain hid these add-ons, misrepresented them, and even charged consumers who rejected them, as well as misleading borrowers during refinancing.

The coalition of attorneys general is seeking recovery of unlawfully charged amounts, penalties for state law violations, and a court order to prevent OneMain from continuing these practices. They also seek to have OneMain cease collection actions and remove negative credit reporting related to these add-on products. Consumers who believe they are victims are encouraged to file a complaint with the Maryland Office of the Attorney General.

What to do next

Review OneMain Financial loan documentation and practices for compliance with state consumer protection laws.
Investigate consumer complaints related to hidden fees and add-on products from OneMain Financial.
Consult legal counsel regarding potential exposure and necessary remediation if similar practices are identified.

Penalties

Recovery of amounts consumers were unlawfully charged, penalties for violating state laws, court order to cease illegal practices, and removal of negative credit information.

Source document (simplified)

Attorney General Brown Sues One Main Financial for Alleged Bait and Switch Lending Scheme Involving Hidden Add-On Products

Published: 3/16/2026

FOR IMMEDIATE RELEASE

Media Contacts [email protected]
410-576-7009

BALTIMORE, MD – Attorney General Anthony G. Brown’s Consumer Protection Division, and 12 other state attorneys general, announced a lawsuit against OneMain Financial, Inc. and related entities (OneMain), alleging that OneMain, a non-prime installment lender, charged consumers nationwide hundreds of millions of dollars in unlawful hidden fees and interest.

With 26 branches operating in Maryland, OneMain advertises high-cost installment loans with supposedly “clear, upfront terms,” but it is accused of unlawfully packing those loans, without consumers’ consent or knowledge, with insurance policies and other add-on products which inflate the cost of the loans by hundreds or thousands of dollars. Attorney General Brown alleged that OneMain rushes consumers through fine-print loan documents containing the dense terms and conditions of the add-ons and hides the add-ons, misrepresents them, or even charges consumers who outright reject them. Further, OneMain is accused of misleading consumers by encouraging them to refinance their loans, then tacks on additional add-on products, fees, and finance charges by hiding key terms.

“Our case claims that OneMain promised Maryland borrowers clear, upfront terms — then buried hidden fees and unwanted add-ons in the fine print to squeeze hundreds or thousands of dollars out of them,” said Attorney General Brown. “We’re filing this lawsuit to hold OneMain accountable and put money back in the pockets of the people they misled.

With this lawsuit, Attorney General Brown and the coalition are seeking recovery of amounts consumers were unlawfully charged for add-on products or fees, as well as penalties for violating state laws. The lawsuit also seeks a court order preventing OneMain from continuing its illegal practices and requiring OneMain to both cease any collection actions and remove any negative information reported to credit agencies regarding loans with these add-on products.

Any consumers who believe that they or someone they know may be a victim of the business practices of OneMain Finance should file a complaint with the Consumer Protection Division at the Office of Attorney General online. For assistance in filing a complaint, call 410-528-8662 or email [email protected].

Along with Maryland, joining in this lawsuit are the attorneys general of Colorado, Nevada, New Hampshire, New Jersey, New York, North Dakota, Oklahoma, Pennsylvania, South Dakota, Virginia, Washington, and Wisconsin.