Consumer complaint received 2025-03-28 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Problem with a trade-in
Company: OneMain Finance Corporation
State: CO

Complaint narrative:
I am filing this complaint against OneMain Financial due to deceptive lending practices and misrepresentation regarding a personal loan I received. 

On XX/XX/XXXX, I obtained a personal loan from OneMain Financial. My clear intentionexplicitly stated to their representativewas to use a small part of the loan to pay off the remaining balance on my XXXX XXXX XXXX loan ( approximately {$2000.00} ) so that I could own the vehicle outright and have the freedom to do what I wished with it. I was assured by OneMain Financial that this personal loan was not a " refinancing '' of my vehicle and that I would receive full ownership and title to the car once my " loan was paid ''. Which I took to mean, once XXXX XXXX received their portion of this personal loan, that I would immediately be sent the title. Due to their hours of operation, insisting I go to a specific branch location, and my own work schedule, my husband XXXX XXXX ( who understands and handles all the legal jargon far better than myself ) was unable to join me for these talks and signings. 
However, unknown to me, OneMain Financial placed a " Security Interest '' on my vehicle as part of the loan terms, effectively using my car as collateral. I was never properly informed, that this is essentially the same as refinancing my car that I barely owed {$2000.00} on, for another {$15000.00} loan ( and something I never would have agreed to do ). I only became aware of this issue on XX/XX/XXXX after contacting the XXXXXXXX XXXX DMV to inquire about the status of my old vehicle 's title. This was XXXX weeks after I had already traded in my vehicle for a newer one on XX/XX/XXXX at the XXXX XXXX dealership. The dealership accepted my trade-in, but the title had not yet been updated to reflect what I believed to be my own ownership but instead was really OneMain Financials security interest. 

Further complicating matters, my old vehicle was sold to a third party approximately on XX/XX/XXXX without the dealership ever obtaining the title from myself. I don't understand how this was even possible, given that OneMain Financial had a claim on the vehicle, and based on the XXXX agent I spoke with, records reflecting all these changes were already in the system by XX/XX/XXXX. 

Now, I am left in a situation where : - OneMain Financial misrepresented the terms of my loan by deceptively using different words than I was using and failing to clearly disclose that they were placing a security interest on my car, knowing that my main goal of the loan was to OWN my vehicle. 
- The dealership accepted my trade-in without verifying the lien status, and they then sold the vehicle without the title. My sister is the one who wanted to purchase my old vehicle from the dealership, and so my husband even called the dealership to inform them of the interest in the vehicle and to confirm that them not having the title yet wouldn't be an issue. 

I am concerned about any potential legal or financial liability that could affect my new vehicle purchase or the overall status of my personal loan.

Company response to consumer: Closed with explanation