OneMain Falls as AG Coalition Sues for Alleged Debt Trap (1)

OneMain Holdings shares fell as much as 12%, before trimming some losses, after New York Attorney General Letitia James, along with a bipartisan coalition of 12 other AGs, filed a lawsuit against the lender and its units for allegedly misleading customers and trapping borrowers in expensive loans with hidden costs.

• Suit alleges OneMain, whose units offer auto and consumer loans, exploits vulnerable customers by loading their loans with expensive and often useless additional products
  • Adds that the products are added to loans without consumers’ knowledge or by misleading them about the products’ terms and costs
• Alleges practices violate state ...