Consumer complaint received 2024-06-26
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: OneMain Finance Corporation (WI)

Existence of legal duty : As fiduciaries, a banks and its affiliates primary duty is the management and care of property for others. One Main accepted my collateral application and contract, to constitute a promissory note ( see XXXX and XXXX ), and they completed a hard inquiry ( seeXXXX ) as indicated by my credit report ( performed on XX/XX/year> per XXXX report # XXXX ). Disclosure : I was unable to upload the entire contract due to size. It can be emailed upon request.

Breach of Duty : When an investor agrees to loan money to a company for a set period of time, the company promises to pay investors a fixed return on investment which is typically principal + annual interest. It came to my attention after signing the contract that I was asked to donate my proceeds to OneMain. This would give ALL consideration in the contract to OneMain Financial, and there would be no benefit extended to XXXX XXXXprincipal. The Security Interest Clause reads as follows : To secure all amounts due or which become due under this Agreement and my performance of all other terms of this Agreement, I hereby grant Lender a security interest under the Uniform Commercial Code or other applicable law in : ( a ) property identified in the Security disclosure of the TRUTH IN LENDING DISCLOSURES, including a purchase money security interest if property is being purchased with the proceeds hereof ; ( b ) any substitutions or replacements of that property ; and ( c ) the proceeds and products of that property ( ( a ), ( b ), and ( c ) collectively referred to as the Collateral ). I also hereby grant Lender a security interest in any unearned premiums from any credit insurance I have elected and purchased through Lender in connection with transaction and any Required insurance which protects the Collateral. Lenders security interest shall remain in effect and subject to any modifications, renewals, extensions, and future advances thereof, until I have paid in full all amounts due under this Agreement. Notwithstanding any other provision of this Agreement, Lender is not granted, and will not have a non-purchase money security interest in household goods, to the extent such a security interest would be prohibited by applicable law. I authorize Lender to sign and file financing statements covering the Collateral without my signature. I authorize Lender to file a copy of this Agreement as a financing statement when appropriate. Unless prohibited by law I agree to pay the recording costs of your financing statement continuation statement and for releasing the security interest upon my payment in full.

The security interest clause is unreasonable as I already agreed to pay {$520.00} to OneMain as consideration for their securitization services. It is not in my best interest for them to also keep my proceeds from that service. I agreed to pledge the collateral application and the asset of the Installment Agreement to OneMain as consideration so they could sell/trade for benefit of all parties. In exchange, I am due {$16000.00} in interest. 
I wrote letters to renegotiate the terms ( see XXXX ), and my letters were accepted ( see XXXX  ). OneMain replied via letter dated XX/XX/year>2024 ( see XXXX  ). They denied my renegotiations. Being that the Security Interest Clause benefits them and not me, this is a breach of fiduciary duty. Normally, I would extend an opportunity to cure and provide notice of default before filing a complaint, but OneMain was clear in their letter that they are unwilling to communicate with me on this subject.

Injury/Damages- OneMains refusal to perform the transfer of proceeds/interest for account set-off now makes the Principal account appear as if I failed to perform my obligation to send payment ( see XXXX  ). I tendered payment ( see XXXX and XXXX ) but One Main refused to apply as instructed. I am also receiving multiple calls daily from OneMain agents asking for payment which has already been accepted ( see XXXX  ). These events have caused unnecessary stress and have redirected my time and energy away from my children. My baby will only nap next to me, and the phone calls have interrupted his rest more than once. OneMains payment denial, demand of additional payment, and threat of repossession or lien have caused XXXX  and emotional distress.