{"id":40436,"date":"2023-05-31T19:50:20","date_gmt":"2023-05-31T23:50:20","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-orders-installment-lender-onemain-to-pay-20-million-for-deceptive-sales-practices\/"},"modified":"2023-05-31T19:50:20","modified_gmt":"2023-05-31T23:50:20","slug":"cfpb-orders-installment-lender-onemain-to-pay-20-million-for-deceptive-sales-practices","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-orders-installment-lender-onemain-to-pay-20-million-for-deceptive-sales-practices\/","title":{"rendered":"CFPB Orders Installment Lender OneMain to Pay $20 Million for Deceptive Sales Practices"},"content":{"rendered":"
WASHINGTON, D.C.<\/b> \u2013 The Consumer Financial Protection Bureau (CFPB) has ordered installment lender OneMain Financial to pay $20 million in redress and penalties for failing to refund interest charged to 25,000 customers who cancelled purchases within a purported \u201cfull refund period,\u201d and for deceiving borrowers about needing to purchase add-on products to receive a loan. OneMain will pay $10 million in refunds to consumers it harmed, and an additional $10 million penalty to the CFPB\u2019s victims relief fund.<\/p>\n
\u201cOneMain pressured its employees to load up its loans with extra charges through false promises of easy cancellation with full refunds,\u201d said CFPB Director Rohit Chopra. \u201cWe are ordering OneMain to refund borrowers it cheated and to clean up its business practices.\u201d<\/p>\n
OneMain is a nonbank personal loan installment lender headquartered in Evansville, Indiana and is a subsidiary of OneMain Holdings, Inc. (NYSE:OMF). OneMain is one of the largest non-depository personal installment lenders in the United States. It has a nationwide network with more than 1,400 branches across 44 states. The company offers loans and makes extra profits by upselling borrowers with products such as roadside assistance, unemployment coverage, and identity theft coverage.<\/p>\n
OneMain expected its employees to upsell borrowers on every loan. Employees were incentivized to push more products, and company training materials directed them to upsell them even when consumers had already declined the products on previous loans. Salespeople were evaluated on the basis of their sales rate and could even be fired if they did not upsell enough.<\/p>\n
The CFPB found that OneMain:<\/p>\n
Under the Consumer Financial Protection Act (CFPA), the CFPB has the authority to take enforcement action against institutions violating consumer financial laws. The CFPB found that OneMain\u2019s practices violated the CFPA\u2019s prohibition on unfair practices by charging and then failing to refund the full premium or fee and interest that accrued on add-on products consumers did not agree to purchase. OneMain also charged and failed to refund interest that accrued on add-on product fees during an advertised full refund period. Finally, the CFPB found OneMain was illegally interfering with consumers\u2019 ability to understand that certain products were optional, and that OneMain charged non-refundable interest during the purported full-refund period.<\/p>\n
The order requires OneMain to:<\/p>\n
Read today\u2019s order.<\/a><\/p>\n Consumers can submit complaints about financial products or services by visiting the CFPB\u2019s website<\/a> or by calling (855) 411-CFPB (2372).<\/p>\n Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to whistleblower@cfpb.gov<\/a>.<\/p>\n<\/p><\/div>\n The Consumer Financial Protection Bureau (CFPB) is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit<\/i> www.consumerfinance.gov<\/i><\/a>.<\/i><\/p>\n<\/div>\n Official news published at https:\/\/www.consumerfinance.gov\/about-us\/newsroom\/cfpb-orders-installment-lender-onemain-to-pay-20-million-for-deceptive-sales-practices\/ <\/a> WASHINGTON, D.C. \u2013 The Consumer Financial Protection Bureau (CFPB) has ordered installment lender OneMain Financial to pay $20 million in redress and penalties for failing to refund interest charged to 25,000 customers who cancelled purchases within a purported \u201cfull refund period,\u201d and for deceiving borrowers about needing to purchase add-on products to receive a loan. […]<\/p>\n","protected":false},"author":1,"featured_media":40437,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[373],"tags":[],"class_list":{"0":"post-40436","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance"},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t
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Images courtesy of PixaBay<\/a><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"