Thirteen state attorneys general sued OneMain Financial on Monday, alleging the nonbank lender deceives borrowers by adding expensive insurance and other products without consent or through misleading claims about costs and terms.

Thirteen state attorneys general sued OneMain Financial on Monday, alleging the nonbank lender deceives borrowers by adding expensive insurance and other products without consent or through misleading claims about costs and terms. The states argue OneMain targets financially vulnerable consumers, trapping them in debt through hidden fees and predatory tactics. The lawsuit seeks consumer restitution, penalties, disgorgement of unlawful profits, and a court order halting these practices. OneMain denies the allegations, claiming full compliance with regulations and noting a prior CFPB settlement in 2023. The case highlights ongoing regulatory scrutiny of nonbank lenders and consumer protection enforcement.