Nevada Attorney General Aaron Ford has joined a multistate lawsuit against OneMain Financial, accusing the installment lender of deceiving consumers through hidden fees and costly add-on products.
Ford, along with attorneys general from 12 other states, alleges the company charged borrowers across the country hundreds of millions of dollars in undisclosed fees and interest tied to optional insurance policies and other add-ons.
According to the complaint, OneMain advertises high-cost installment loans with what it describes as “clear, upfront terms,” but then inflates the total cost by bundling in additional products that can add hundreds or even thousands of dollars to a loan.
The company operates nine branches in Nevada, including two in Reno.
“Taking out a loan shouldn’t come with hidden costs or surprises,” Ford said in a statement. “Companies must be upfront about what consumers are paying for. We’re taking action to protect Nevadans and hold OneMain accountable.”
The lawsuit outlines several alleged practices by OneMain, including failing to disclose that it sells add-on products and pressuring employees to include them in loans. While the company maintains written policies against unlawful add-on packing, the suit claims its actual practices differ significantly.
Investigators also allege that OneMain employees rush customers through the loan process, often controlling the computer screen displaying the documents and limiting borrowers’ ability to review terms. Key details about add-ons are allegedly buried in lengthy contracts, sometimes exceeding 50 pages, and made difficult to read, particularly on mobile devices.
The complaint further claims the company misleads consumers during refinancing by adding new products and obscuring key loan terms.
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