Consumer complaint received 2025-06-07 00:00:00
Product: Debt collection — Other debt
Issue: Took or threatened to take negative or legal action — Sued you in a state where you do not live or did not sign for the debt
Company: OneMain Finance Corporation
State: TN

Complaint narrative:
Sent via Certified Mail and Email OneMain Financial XXXX XXXX XXXX XXXX XXXX XXXX Re : Final Demand Prior to Litigation FDCPA & Consumer Protection Violations You are hereby placed on formal notice that your companys role in retaining and authorizing XXXX XXXX XXXX XXXX XXXX XXXX to initiate a lawsuit in an improper venue represents a flagrant violation of federal consumer law. Your involvement exposes OneMain Financial to liability for statutory damages, actual damages, and potential punitive claims under the FDCPA, the Consumer Financial Protection Act, and additional state-level provisions. This letter constitutes a final attempt to resolve this matter without initiating a lawsuit seeking full legal remedies in both state and federal jurisdictions. 

Summary of Violations Your authorized debt collection firm, XXXX XXXX XXXX, filed a meritless and improperly venued lawsuit against me on XX/XX/XXXX, in XXXX XXXX. This filing was not only legally unsupported but malicious in intentdesigned to confuse, harass, and coerce settlement from a consumer who had clearly and repeatedly disclosed a different legal residence. Such conduct is not only unethical but actionable. 

Applicable Legal Violations 15 U.S.C. 1692i Improper venue filing 15 U.S.C. 1692e ( 5 ) Threatening illegal or unauthorized legal action UDAAP Unfair, Deceptive, or Abusive Acts or Practices Rules of Professional Conduct : Rule 1.1, 3.1, 4.4, 8.4 ( d ) Demand for Settlement To avoid imminent litigation and potential exposure to regulatory sanctions, I am willing to resolve this matter for a total of * * {$9200.00} * *. This amount accounts for actual and statutory damages arising from your reckless legal tactics and unlawful venue selection. This demand is not a negotiationit is a final opportunity to mitigate exposure before I initiate proceedings in XXXX XXXX and notify the CFPB, FTC, and the XXXX  Attorney Generals office of your conduct. You will also be reported to all relevant licensing and compliance bodies for enabling abusive litigation practices. 

Additionally, XXXX XXXX XXXX publicly posted policy states : Email communications are not substitutes for legal pleadings, disputes, requests for validations or other legal notices, and that they may elect to decline to respond to any email message. This language reflects a systemic attempt to discourage consumers from asserting their rights under the Fair Debt Collection Practices Act, particularly 1692g, which requires timely and documented responses to disputes and requests for validation. These statements are not only misleading but constitute an overt effort to suppress accountability, evade written records, and limit the consumers ability to prove misconduct. Such policies are presumptively deceptive under the Consumer Financial Protection Act and will be presented as evidence of deliberate consumer harm in any regulatory or judicial proceeding that follows. 

Additionally, OneMain Financial was fined {$20.00} XXXX by the Consumer Financial Protection Bureau in XX/XX/XXXX for systemic deceptive practices including pressuring consumers into purchasing optional add-on products and failing to provide promised refunds. This enforcement action is part of a broader pattern of conduct indicating widespread consumer harm. 

Should this matter proceed to litigation, we are prepared to seek class certification under Rule 23 of the Federal Rules of Civil Procedure. The conduct described is not isolated ; it suggests systemic abuse with impact on numerous similarly situated consumers. The risk of class action exposure further increases XXXX potential liability and litigation costs, including reputational consequences. 

Moreover, any attempt by OneMain Financial to now invoke the arbitration clause included in the loan agreement would be interpreted as selective and retaliatory. You initiated litigation in an improper venue in direct violation of 15 U.S.C. 1692i and only withdrew after regulatory action was taken. Your refusal to pursue arbitration initially, coupled with a class action waiver and asymmetric forum access, renders the agreement procedurally and substantively unconscionable. Courts have repeatedly invalidated one-sided arbitration agreements designed to suppress consumer redress while enabling creditor abuse. Enforcement of such a clause now would further expose XXXX to litigation risk and regulatory scrutiny under the CFPBs unfair, deceptive, or abusive acts or practices ( UDAAP ) doctrine and public policy exceptions. 

This is your final opportunity to avoid escalating legal, regulatory, and reputational consequences. This matter has already been formally reported to the Consumer Financial Protection Bureau ( CFPB ), the Federal Trade Commission ( FTC ), the XXXX  Attorney Generals Office, and relevant licensing and compliance bodies. These entities are now actively reviewing your firms role in facilitating improper venue litigation, obstructing consumer rights, and participating in broader systemic violations. This demand letter will be submitted as additional evidence of your unwillingness to self-correct.

If I do not receive a resolution within 14 calendar days, I will initiate formal proceedings in XXXX XXXX and pursue all available legal remedies, including statutory, actual, and punitive damages. 

Consider this your final pre-suit notice. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation