March 16 (Reuters) – OneMain was sued on Monday by 12 U.S. state attorneys general, who accused the subprime lender of tacking on hidden add-on products to loans to extract hundreds of millions of dollars in junk fees from consumers, New Jersey Attorney General Jennifer Davenport said on Monday in a press release.
A copy of the complaint was not immediately available. The New Jersey attorney general removed a press release announcing the lawsuit shortly from its website after posting the release.
OneMain lends to people who may otherwise have limited access to credit.
The Evansville, Indiana-based company agreed in May 2023 to pay $20 million to settle U.S. Consumer Financial Protection Bureau charges that it pressured employees to sell add-on products to meet sales targets, deceived borrowers about needing to buy those products, and failed to refund interest to borrowers who cancelled add-ons they bought.
In a statement, OneMain called the states’ allegations “simply untrue” and an attempt to relitigate issues the CFPB resolved.
“We operate honestly and transparently, in full compliance with all laws and regulations, as we provide responsible and much needed access to credit for hardworking Americans,” OneMain said. “We will litigate this case vigorously and look forward to proving the truth in court.”
The office of New Jersey’s attorney general had no immediate comment.
OneMain shares were marginally higher in trading Monday.
(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama)
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