Attorney General Jay Jones announced on Mar. 18 that Virginia, along with 12 other states, has filed a lawsuit against OneMain Financial, Inc. and related entities for allegedly charging consumers hundreds of millions of dollars in hidden fees and interest through high-cost installment loans.
The lawsuit seeks restitution for affected consumers, penalties for violations of state laws, and an end to the practices described as unlawful. The case highlights concerns about consumer protection and the financial impact on vulnerable communities who may have been charged for insurance policies and add-on products they did not want or request.
According to the complaint, OneMain operates multiple branches in Virginia offering loans with what are advertised as clear terms but includes additional products that increase costs by hundreds or thousands of dollars. The complaint alleges that consumers are rushed through complex documents containing details about these add-ons, which are sometimes concealed or misrepresented. It also claims some customers were charged even after rejecting these products.
“Exploiting Virginians’ by promising quick cash but trapping them with payments for services they did not need, want, or ask for is unacceptable and predatory,” Attorney General Jones said. “My office will always fight back against predatory lenders that take advantage of vulnerable communities for their own financial gain. We will protect vulnerable consumers against bad actors.”
The lawsuit asks the court to order OneMain to stop its current practices, withdraw any negative credit information reported due to these add-ons, and drop legal actions against customers related to them. Consumers who believe they have been affected are encouraged to file complaints online or by phone.
This action is led by the Attorneys General of Pennsylvania and New York alongside Jones, with participation from Colorado, Maryland, Nevada, New Hampshire, New Jersey, North Dakota, Oklahoma, South Dakota, Washington, and Wisconsin.
The Attorney General of Virginia supports civil rights enforcement and victim assistance programs according to its official website. The office also provides legal counsel to state agencies while promoting public safety and defending constitutional rights as detailed online. Jason Miyares currently serves as the 48th Attorney General of Virginia according to the official website, serving all residents across the Commonwealth as noted online. The office addresses issues such as human trafficking and domestic violence through legal advocacy according to its website and offers consumer protection resources including identity theft prevention and fraud reporting services as stated online.
