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• Attorney General Formella Sues OneMain Financial, Seeks Hundreds of Millions in Restitution for Alleged Bait-and-Switch Lending Scheme Involving Hidden Loan Add-Ons

Press Release For Immediate Release Date: March 16, 2026

Contact Michael S. Garrity, Director of Communications
(603) 931-9375 | michael.s.garrity@doj.nh.gov Brandon H. Garod, Senior Assistant Attorney General, Consumer Protection and Antitrust Bureau Chief
(603) 271-1217 | Brandon.H.Garod@doj.nh.gov

Attorney General Formella Sues OneMain Financial, Seeks Hundreds of Millions in Restitution for Alleged Bait-and-Switch Lending Scheme Involving Hidden Loan Add-Ons

Concord, NH - Attorney General John M. Formella along with 12 of his fellow state Attorneys General announce a lawsuit against OneMain Financial, Inc. and related entities regarding the installment lender charging consumers nationwide hundreds of millions of dollars in hidden fees and interest.

With five branches operating throughout New Hampshire, OneMain Financial advertises installment loans, but it packs those loans with often worthless insurance policies and other add-on products. As a result of these hidden add-ons the cost of OneMain’s subprime loans, which are already high interest, is inflated by hundreds or thousands of dollars. OneMain often hides the add-ons, sometimes misrepresents them, or even charges consumers who outright reject them.

“Our complaint alleges that OneMain marketed installment loans to Granite Staters seeking financial relief, then increased the cost of those loans through add-on products that consumers did not clearly request or knowingly agree to,” Attorney General Formella said. “New Hampshire families trying to make ends meet deserve straightforward terms, not hidden costs. Companies that fail to provide transparency and fair dealing, as required by our consumer protection laws, should expect our office to take action to ensure a fair and honest marketplace.”

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 will not expect the company to push these products.
• OneMain rushes consumers through the loan process without allowing the consumer to understand, or sometimes even notice, that add-on products have been added to their loans.
• OneMain operates an elaborate sales process that purports to disclose the products, but the company puts financial pressure on its employees to hide the add-ons.
• OneMain pre-populates its loans with every possible add-on product before rushing through a loan closing process in which its employees 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 1/3 its normal size.
• OneMain also misleads consumers when encouraging them to refinance their loans by tacking on add-on products and by hiding key terms. As a result, consumers only discover how much they are paying for the loans after the loans have been completed. With this lawsuit, Attorney General Formella 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 Finance should file a complaint. The New Hampshire Department of Justice Consumer Protection and Antitrust Bureau investigates unfair, deceptive, or unreasonable practices involving New Hampshire consumers.  To file a complaint with the New Hampshire Department of Justice, visit https://www.doj.nh.gov/consumer/complaints.

In addition to New Hampshire, the coalition behind this lawsuit also includes the Attorneys General of Colorado, Maryland, Nevada, New Jersey, New York, North Dakota, Oklahoma, Pennsylvania, South Dakota, Virginia, Washington, and Wisconsin.

• Complaint: onemain-filed-complaint.pdf
  • Format: PDF
• Exhibit: ny-pa-et-al-v-onemain-exhibit-a-website-mobile-screenshots-filed.pdf
  • Format: PDF