Consumer complaint received 2019-04-08
Company: ONEMAIN FINANCIAL HOLDINGS, LLC.
State: PA
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem with additional add-on products or services

Complaint:
I had purchased a selection of insurance coverage protection plans when I obtained a loan through OneMain Financial. The coverage included involuntary employment insurance. Upon direction and full disclosure of my employment statuses, a claim for unemployment coverage was submitted to XXXX XXXX XXXX in XX/XX/XXXX, on my behalf. The claim was subsequently paid by XXXX XXXX XXXX, with no contact with me during the claim review process or upon determination of the claim status. Subsequently, through a 2nd period of unemployment, an additional claim was submitted to XXXX XXXX XXXX by OneMain Financial, on my behalf in XX/XX/XXXX. Upon submission of the 2nd claim, XXXX XXXX XXXX denied the claim and demanded repayment of the initial claim in a letter dated XX/XX/XXXX. The letter, furthermore, DEMANDED a written explanation of the initial, XX/XX/XXXX, unemployment claim as well as full reimbursement of the amount paid to OneMain Financial. In a subsequent letter, dated XX/XX/XXXX, XXXX XXXX XXXX alleged I presented misrepresented information, in violation of Pennsylvania 's illegal ac 18 PA ST 4117 and may be subjected to criminal and civil penalties. Upon receipt of the letter dated XX/XX/XXXX, I personally telephoned Ms. XXXX XXXX, IFC, Special Investigator and discussed my employment status as well as what was disclosed to OneMain Financial prior to submission of the initial claim. The branch office of OneMain Financial advised me, " all '' information would be submitted to " the insurance company '' as I was unaware of the XXXX XXXX, at that time, for company review. Ms. XXXX advised me all correspondence must be sent to XXXX XXXX XXXX in writing. In a letter dated XX/XX/XXXX, I recapped my displeasure with the reference of having conducted an unlawful act and personal attack on my reputation, character and integrity. In addition, I recapped the context of the telephone discussion I had with Ms. XXXX including reference to the telephone conversation that occurred between myself and the OneMain Financial branch office in XX/XX/XXXX. My XX/XX/XXXX letter also requested an amicable resolution to this matter. In response to my letter of XX/XX/XXXX, in a letter dated XX/XX/XXXX, by Ms. XXXX on behalf of XXXX XXXX XXXX, Ms. XXXX reference employment information obtained from 2 previous employers. The letter also referenced my response to " have you returned to work '' as " No ''. This response was the recommended response by the OneMain Financial branch as there was a gap in employment, part of which was voluntary, however, the branch office of OneMain Financial led me to believe the verbal dialogue as well as the signed claim form would all be submitted to XXXX XXXX XXXX, on my behalf. The letter continued the DEMAND for repayment and included a letter dated XX/XX/XXXX purported to have been sent to me indicating the claim had been reviewed and paid to OneMain Financial. In a response letter, dated XX/XX/XXXX to XXXX XXXX XXXX, my introduction portion of the letter indicated " With all due respect, XXXX has reviewed and made the determination based upon information provided by other parties. In addition, the letter requested specific information including, any information obtained from the OneMain Financial branch office, details regarding information obtained from previous employers, request for termination of any coverage provided by XXXX XXXX XXXX on my behalf, effective XX/XX/XXXX, an explanation why XXXX XXXX XXXX is demanding payment from me for monies paid to OneMain Financial, a review and determination of 2 months for which I should be eligible for payment and a detailed plan to resolve this issue as well as correction to IRS reporting. In a response letter from XXXX XXXX XXXX, dated XX/XX/XXXX, the letter references " validation '' of employment by previous employers, an interview with the branch manager of OneMain Financial that referenced my discussion with the branch manager regarding insurance coverages included with my loan. In addition, the interview with the branch manager references the branch manager did not advise me benefits would be paid, however, " XXXX '' would review the information and then make a determination on my claim. Notwithstanding, what has been stated, the letter as well as the " interview '' do not reference the full disclosure of employment statuses made by me to the OneMain Financial branch office. The letter, furthermore, indicates any additional information necessary for XXXX XXXX to review the claim would be requested from me. There was NEVER any contact by or with me, from XXXX XXXX XXXX until XX/XX/XXXX. XXXX XXXX XXXX provided for a written repayment plan which must be executed within 30 days of the XX/XX/XXXX letter, an involuntary unemployment claim form for the 2 months previously questioned, refused to cancel the insurance coverage, as requested in my XX/XX/XXXX letter, indicating the cancelation must be requested through the OneMain Financial branch, refusal to release information obtained from a previous employer and indication the IRS reporting correction would be processed upon full repayment. The letter also indicates XXXX XXXX XXXX is demanding repayment from me rather than OneMain Financial " because the insurance contract is between myself and XXXX '', " not between XXXX and OneMain '', however " made benefit payments to OneMain Financial on my behalf '' for the claim in question. If in fact the insurance contract is between myself ( the borrower ) and XXXX XXXX ( the underwriter ), why have benefits been paid to OneMain Financial? If the insurance contract is between myself ( the borrower ) and XXXX XXXX ( the underwriter ), why do I need to contact the OneMain Financial branch office to cancel coverage? If the insurance contract is between myself ( the borrower ) and XXXX XXXX ( the underwriter ), why will the eligible benefits be paid to OneMain Financial?

Company response to consumer: Closed with explanation