Consumer complaint received 2026-05-31 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem with the payoff process at the end of the loan — 
Company: OneMain Finance Corporation
State: GA

Complaint narrative:
In XX/XX/XXXX, OneMain Financial refinanced an existing loan I had with them. They paid off my prior balance of {$7000.00} with the proceeds of a new loan of {$10000.00}. Of that new loan, only {$3000.00} was actual new cash to me. The remainder went to pay off the prior OneMain loan ( {$7100.00} ) and an optional credit life insurance product ( {$520.00} ). The new loan carried a 35.96 % APR with {$12000.00} in finance charges meaning I would pay more in interest than the amount I actually received. In the first months of the loan, my payments were almost entirely consumed by interest. My first {$530.00} payment in XX/XX/XXXX reduced principal by only {$70.00}. My XX/XX/XXXX payment of {$380.00} reduced principal by only {$2.00}. After making XXXX payments totaling approximately {$3500.00}, my principal balance had dropped by only about {$170.00}. Since the original loan, OneMain has modified my loan XXXX separate times. Each modification reduced my monthly payment but extended the loan term and deferred unpaid interest into a balloon payment due at maturity. My original maturity date of XX/XX/XXXX has been extended multiple times and is now XX/XX/XXXX a XXXX loan stretched into nearly 9 years. As of my most recent statement ( XX/XX/XXXX ), I have a " forborne principal and/or interest '' balance of {$2200.00} that will come due as a lump sum at the new maturity date, in addition to my regular monthly payments. The cumulative result has been financially devastating. Over five years of consistent payments including a {$1000.00} lump-sum payment in XX/XX/XXXX and additional extra payments I have paid approximately {$19000.00} to OneMain. Of that, only approximately {$3500.00} has gone to principal. My current balance is {$7100.00}, plus {$2200.00} in forborne interest, totaling {$9300.00} still owed. That is 87 % of the original principal, still outstanding after XXXX years of payments. If I continue paying through the new maturity date of XX/XX/XXXX, I will have paid OneMain a total of approximately {$30000.00} on an original loan of {$10000.00} of which only {$3000.00} was new cash to me, the rest having gone to refinance a prior OneMain loan and an optional insurance product. I believe OneMain has engaged in the following practices that harmed me : 1. * * Loan flipping / churning. * * In XX/XX/XXXX, OneMain refinanced a smaller existing loan into a larger, more expensive one. This generated new origination fees and finance charges for OneMain while providing me only {$3000.00} in new money. This practice has been the subject of prior CFPB enforcement action against OneMain. 2. * * Deferred and forborne interest schemes. * * Through repeated loan modifications, OneMain has deferred unpaid interest into balloon payments at maturity rather than forgiving it. The result is that I am paying interest on interest and the original principal is never substantively reduced. 3. * * Repeated term extensions. * * Each modification extended my maturity date, locking me into more years of payments rather than resolving the underlying unaffordability of the loan. 4. * * Charging interest at a rate that consumed nearly all payments early in the loan. * * At 35.96 % APR, the structure of the loan meant the principal could not be meaningfully reduced through scheduled payments. 5. * * Improper handling of credit life insurance. * * At origination, OneMain sold me a XXXX XXXX XXXX policy for a {$520.00} single premium that was financed into the loan principal, meaning I have paid 35.96 % APR interest on the insurance premium itself. The Initial Debt insured on the certificate was set at {$23000.00} the inflated XXXX of Payments including all future finance charges rather than the XXXX XXXX of {$10000.00}. The certificate 's Termination of XXXX provision states that the insurance automatically terminates " when the loan is paid off early, renewed or refinanced '' and that " the unearned portion of the prepaid premium will be refunded to You and/or credited to Your account '' using the Rule of XXXX. My loan has been modified at least XXXX times since XX/XX/XXXX, yet my most recent statement ( XX/XX/XXXX ) still lists XXXX XXXX XXXX XXXX as an active product, and I have never received any premium refund. The original coverage period was supposed to expire XX/XX/XXXX, but my loan now runs to XX/XX/XXXX meaning I will have nearly XXXX additional years of loan obligation with no insurance protection ( or, if the insurance is somehow still active, with no documentation of how that occurred or what premium was charged ).

Company response to consumer: Closed with explanation