OneMain to Pay $20 Million After Deceptive Lending Claims (4)

US regulators ordered OneMain Holdings Inc. to pay $20 million in redress and penalties, saying the personal loan installment lender deceived customers into taking on additional products and withheld interest from them.

OneMain will pay $10 million to refund customers and $10 million to the Consumer Financial Protection Bureau’s relief fund, according to a statement from the agency.

“OneMain pressured its employees to load up its loans with extra charges through false promises of easy cancellation with full refunds,” CFPB Director Rohit Chopra said. “We are ordering OneMain to refund borrowers it cheated and to clean up its business practices.” ...