Attorney General Weiser sues OneMain Financial over hidden loan add-ons that inflated borrowers’ costs

Attorney General Weiser sues OneMain Financial over hidden loan add-ons that inflated borrowers' costs

March 16, 2026 (DENVER) - Attorney General Phil Weiser today announced that Colorado has joined a multistate lawsuit against OneMain Financial, Inc. and related entities, alleging the company engaged in deceptive and unlawful lending practices that saddled consumers with hundreds of millions of dollars in hidden fees and inflated interest charges.

The complaint alleges that OneMain markets installment loans with "clear, upfront terms," including to borrowers with subprime credit, but then pushes costly insurance policies and other add-on products that significantly increase the cost of the loan. The lawsuit also alleges that OneMain sold unlawful Guaranteed Asset Protection, or GAP, products to Colorado consumers, charging excessive premiums on loans that exceeded the 150% loan-to-value limit allowed under Colorado law.

"OneMain targeted people who were already facing financial challenges and made their loans far more expensive through hidden add-ons and misleading tactics," said Attorney General Weiser. "Colorado law requires transparency and honesty in lending. When companies take advantage of consumers instead of treating them fairly, we will hold them accountable."

The lawsuit also alleges that although OneMain has written policies intended to prevent unlawful add-on practices, its actual loan processes often operate differently. The complaint claims OneMain pressures employees to sell add-on products and rushes consumers through loan closings, sometimes controlling the computer screen displaying loan documents so borrowers have little time to review the terms. Disclosures about add-on products are buried within lengthy loan documents, and closings often occur on smartphones where already small text becomes difficult to read, while the company emphasizes monthly payments instead of the total cost of the loan.

The complaint also claims that OneMain encourages borrowers to refinance their loans repeatedly, extending loan terms, adding new fees, and packing in additional add-on products that can leave consumers paying far more than they originally borrowed.

The coalition is seeking restitution for affected consumers, civil penalties, and requiring the company to return profits obtained through its unlawful practices. The lawsuit also asks the court to stop the alleged practices, remove related negative credit reporting, and halt collection actions tied to the add-on products.

Joining Attorney General Weiser in the lawsuit are the attorneys general of New York, Maryland, Nevada, New Hampshire, New Jersey, North Dakota, Pennsylvania, Oklahoma, South Dakota, Virginia, Washington, and Wisconsin.

Consumers who believe they may have been affected by OneMain's practices can file a complaint with the Colorado Attorney General's Office at StopFraudColorado.gov or by calling 1-800-222-4444.

Read the filed complaint (PDF).

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