OneMain Financial makes personal loans, and it’s known for lending to “people with poor credit who may have trouble qualifying for a traditional bank loan.” But its interest rates are high, averaging 27% but going as high as 35.99%.
Judging by the online complaints, OneMain is also known for a combination of high interest rates, borrowing fees, and monthly payments that don’t seem high enough to ever free lenders from debt. One borrower says in bewilderment, “I borrowed some money from them and after a year of paying $200 a month I still owe more than I borrowed.” Another complains, “Been paying on loan for the [last] 10 years. Have not hit my principal yet.” And a third: “We borrowed $7500 for household work and our payback is $15,000. We have asked how is this possible and they just gave us the run around.”
With that kind of business model, it wouldn’t be surprising if a lot of borrowers at some point have difficulty making payments on their loans.
What we’re currently investigating is what happens then. Are OneMain’s debt collection practices lawful, fair, and honest?
Signs say that they might not be. At least two class actions, one in California and one in West Virginia, have been filed alleging that OneMain violated the Telephone Consumer Protection Act (TCPA) in attempting to collect debt.
Here are some kinds of behavior that state and federal laws forbid:
Laws vary in different states, but the TCPA—which forbids robo-calls about debt to cell phones—is a federal law that applies in all fifty states.
If you’ve experienced questionable debt collection practices with a OneMain Financial loan, fill out the form on this page and attach evidence, such as letters received or cell phone numbers called and dates of calls.