Federal News
New York AGs Sue Lender Over Add-On Packing
March 24, 2026
A coalition of thirteen state Attorneys General, led by former Consumer Financial Protection Bureau (CFPB) enforcement attorneys now serving in senior state roles, has filed a lawsuit against OneMain Holdings, Inc., a major non-bank installment lender, alleging deceptive add-on packing practices that inflate loan amounts and interest through undisclosed bundled products. This state-led enforcement action reflects a rigorous approach aligned with federal standards and signals increased scrutiny on lenders offering financed add-on products.
- Lenders providing add-on financing should proactively review their closing processes, compensation structures, product loss ratios, and compliance with the Truth in Lending Act (TILA) to mitigate risk of similar enforcement actions.
- Procurement professionals and contractors in financial services should anticipate heightened regulatory oversight from state Attorneys General offices, especially those staffed by former federal enforcement personnel.
- This development underscores the importance of compliance diligence in loan product design and disclosure practices to avoid litigation and reputational risk.
- Companies involved in servicing or providing technology for installment lending may find increased demand for compliance solutions and risk management services.
Lenders offering financed add-on products should review their closing process design, compensation structures, product loss ratios, and TILA characterization of add-ons.
— A.J.S. Dhaliwal
With experienced CFPB enforcement attorneys now running these cases from state AG offices, companies should expect state-led actions that match the Bureau's historical rigor.
— Mehul Madia
Agencies
Office of the Attorney General of New York, Consumer Financial Protection Bureau, Southern District of New York
Vendors
OneMain Holdings, Inc.