Consumer complaint received 2026-03-05 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: OneMain Finance Corporation
State: FL

Complaint narrative:
I am submitting this complaint regarding servicing errors on a vehicle-secured installment loan serviced by OneMain Financial XXXX At the time the loan was originated, I purchased a XXXX protection product associated with the loan. The purpose of this coverage was to ensure that loan payments would be covered during any period in which I was medically unable to work. I experienced a medically documented XXXX period from XX/XX/year> through XX/XX/year>. I followed the instructions provided by the company and submitted physician documentation supporting my XXXX claim. Despite the existence of the XXXX protection product and the ongoing claim review, OneMain Financial continued to automatically withdraw loan payments from my bank account during the XXXX period. These withdrawals occurred while I was medically unable to work and while the XXXX claim was pending review. The continued withdrawals caused significant financial disruption and resulted in my bank account becoming overdrawn. This created additional financial hardship during a time when I was already dealing with serious medical issues. Several months later, OneMain Financial acknowledged the XXXX claim and issued a payment related to the claim on XX/XX/year>. This confirms that the XXXX claim was valid and ultimately approved. However, by that time the account had already accumulated late fees, delinquency status, and negative credit reporting due to the withdrawals and account handling during the XXXX period. I attempted to resolve this matter directly with the company. I submitted written communications explaining the situation and requesting correction of the account. I also mailed a formal notarized dispute to the company after receiving a Notice of Default and Intent to Repossess. My dispute explained that the loan servicing during the XXXX claim period appears to have been handled incorrectly, particularly with respect to : Continued automatic withdrawals while the XXXX claim was pending Failure to properly apply the XXXX protection coverage during the approved XXXX period XXXX fees and delinquency status created during the XXXX claim period Negative credit reporting that appears to stem from this servicing issue I want to emphasize that I am not attempting to avoid my financial obligations. My goal is simply to have the account corrected to accurately reflect the XXXX coverage period and the payments that should have been covered by the protection product that I purchased. Once the servicing errors related to the XXXX claim period are corrected, I am willing to work with the lender to bring the account into proper standing and resolve the loan. At present, however, I have received a Notice of Default and Intent to Repossess while this servicing dispute remains unresolved. I respectfully request that the Consumer Financial Protection Bureau review this matter and that OneMain Financial conduct a full investigation into the servicing of this account during the XXXX claim period. I am seeking correction of the account history, removal of inaccurate late fees or credit reporting associated with the XXXX period, and a fair opportunity to resolve the loan once the account has been properly reviewed.

Company response to consumer: Closed with explanation