Attorney General Jennifer Davenport announced on Mar. 16 that New Jersey, along with a coalition of 12 other states, has filed a lawsuit against OneMain Financial, Inc., one of the largest subprime installment lenders in the country. The suit alleges that OneMain charged consumers hundreds of millions of dollars in undisclosed fees by adding costly products to loans without proper consent.
The case is significant as it addresses concerns about affordability and transparency for borrowers who may already be facing financial hardship. According to the complaint, OneMain sold approximately $27 million worth of add-on products in New Jersey between 2021 and 2022 through its 26 branches across the state.
Davenport said, “To make life more affordable, we will hold accountable any business that takes advantage of hardworking New Jerseyans by charging them hidden junk fees and tricking them into purchasing exorbitantly priced products. That’s exactly what OneMain did. New Jerseyans in need of financial assistance came to OneMain for help, but they were sold expensive, inflated loan products they didn’t want and couldn’t afford.” She added that lenders should not profit from increasing customers’ debt with unnecessary products.
The lawsuit claims these add-ons—such as credit insurance and membership programs—provided little value to borrowers while generating substantial profits for OneMain. Acting Division of Consumer Affairs Director Jeremy E. Hollander said, “The add-on fees and interest charged by OneMain were rarely, if ever, adequately disclosed or explained, and consumers wound up being charged for products they never agreed to, much less understood. Businesses operating in New Jersey must comply with the laws and regulations that protect our consumers against unconscionable and abusive sales and advertising practices. Such conduct will not be allowed to go unchecked in New Jersey.”
The legal action seeks refunds for affected consumers, penalties for violations of state law, disgorgement of profits from the alleged scheme, an end to the disputed practices, removal of negative credit information related to these loans, and dismissal of related collection actions.
According to the official website, the New Jersey Attorney General Matthew Platkin aims to protect residents’ lives and property while providing statewide enforcement and legal support. The office extends its authority throughout all counties and municipalities in New Jersey according to its official website. It also influences public safety through law enforcement oversight as reported by the official website.
The Attorney General’s office holds statewide authority under its statutory mandate according to its official website, offering services such as legal representation for the state government, crime lab support, victim advocacy programs, consumer protection initiatives according to its official website, and overall regulation focused on justice and public safety across New Jersey as stated on its official site.
Consumers who believe they have been affected are encouraged to file complaints online with the Office of Attorney General.
