Consumer complaint received 2025-08-05 00:00:00
Product: Debt collection — I do not know
Issue: False statements or representation — Attempted to collect wrong amount
Company: OneMain Finance Corporation
State: AZ

Complaint narrative:
On XX/XX/year> I emailed XXXX XXXX XXXX about settleing a debt with OneMain Financial XX/XX/XXXX I get this response Thank you for reaching out to me via email. I will need to verify your identity and obtain permission to correspond with you about the OneMain Financial matter using this email address. To that end, can you please provide the last XXXX numbers of your social security number? Please also state whether I do indeed have permission to use this email to correspond with you regarding the OneMain Financial matter. 

Please be advised that I am an attorney attempting to collect a debt and any information you give to me will be used for that purpose. 

XX/XX/XXXX I respond with My last four of social are XXXX, and yes, you have permission to contact me using this email address while we discuss the OneMain debt only I am looking to pay off the debt in full if I can have it reduced, or set up a payment plan that is reasonable XX/XX/XXXX XXXX responds with Thank you ; You can propose a settlement and/or payment plan XX/XX/XXXX I respond with I am writing regarding the outstanding debt of {$2200.00} owed to OneMain Financial XXXX I am committed to resolving this matter amicably and would like to propose a settlement arrangement. 

I can pay a total of {$1100.00}, which represents approximately half of the amount owed. My proposed payment plan is as follows : An initial payment of {$100.00} is to be made today, XX/XX/year>. 

XXXX additional payments of {$500.00} each, to be made on XX/XX/year>, and XX/XX/year>, respectively. 

This payment plan would satisfy the debt in full, and I kindly request that, upon receipt of these payments, the debt be considered settled and no further action be taken. 

Please confirm your acceptance of this settlement offer in writing. After you've accepted it, I'll make the initial payment as outlined. 

I appreciate your consideration. I look forward to resolving this matter promptly. 

XX/XX/XXXX XXXX responds with Hello We have asked for judmgent in your case but have not yet received judgment. 

OneMain will accept {$1200.00} in full settlement of the balance owing, payable {$230.00} this month, {$500.00} on XX/XX/year> and {$500.00} on XX/XX/year> Please be advised that when you settle your debt for less than the amount owed, there may be tax consequences. We can not provide you with tax advice and you should consult your own tax advisor if you have questions about the tax implications of settling your debt for less than the amount owed. In addition, OneMain may report your account to the credit bureaus as settled for less than the amount owed and some variation of this credit reporting may appear on your credit report I was then given this link to make payments XXXX XXXX XXXX? XXXX XX/XX/XXXX I email XXXX I am about to make my first payment of {$230.00} for this month, but see a balance of {$1600.00} when you said " OneMain will accept {$1200.00} in full settlement of the balance owing, payable {$230.00} this month, {$500.00} on XX/XX/year> and {$500.00} on XX/XX/year> '' Could you update the balance owed before I send a payment? thanks XX/XX/XXXX XXXX responds with The balance owing on the payment portal will reflect the entire balance owing and not the settlement amount. The balance will not be adjusted to XXXX until after all the settlement payments are made in full and on time. Anytime you want a balance owing on the settlement amount, please email me for that information. 

Please be advised that I am an attorney attempting to collect a debt and any information you give to me will be used for that purpose. If you no longer want to receive communications from me via this email address, please reply to this email with Stop in the subject line XX/XX/XXXX I respond with Understood, thank you for the clarification On XX/XX/XXXX I check my mail to see a letter from the court, default judgemtnt that I pay {$2200.00} I then email XXXX about this, she doesnt address what I asked in my email, I said " I am ready to make my last payment from our agreement as discussed through email and I got this in the mail. 
Can you confirm that we will follow our agreement and not this court order " XX/XX/XXXX I get a respnse from XXXX " Hello The balance has gone up. OneMain will accept {$1600.00} in full settlement of the balance owing. You have paid {$730.00} so this would require a {$930.00} payment no later than XX/XX/year>. 

Please be advised that when you settle your debt for less than the amount owed, there may be tax consequences. We can not provide you with tax advice and you should consult your own tax advisor if you have questions about the tax implications of settling your debt for less than the amount owed. In addition, OneMain may report your account to the credit bureaus as settled for less than the amount owed and some variation of this credit reporting may appear on your credit report Please also be advised that I am an attorney attempting to collect a debt and any information you give to me will be used for that purpose. If you no longer want to receive communications from me via this email address, please reply to this email with Stop in the subject line. '' Now I owe more than agreed and nothing to explaining the court order I respond on XX/XX/XXXX with I am writing about the default judgment I received in the mail for Case No. XXXX, and the prior settlement agreement we made. 

On XX/XX/year>, we agreed that I would pay a total of {$1200.00} to settle this debt in full. I have made the first payment of {$230.00} as agreed and have planned the remaining payments of {$500.00} for XX/XX/XXXX and {$500.00} for XX/XX/XXXX. 

I was surprised to receive a new email stating the full settlement amount is now {$1600.00}. This change is both unprofessional and concerning, as it contradicts the terms we previously established. The abrupt change in the agreed-upon amount has caused me significant unease, as I now worry that the terms of our agreement will continue to change. 
I am concerned and troubled by the default judgment as it contradicts our prior agreement. The sudden change in the amount and the filing of this judgment, despite a standing settlement agreement, appears to be in violation of the Fair Debt Collection Practices Act ( FDCPA ). I intend to fulfill my part of our original agreement, but I am prepared to file a formal complaint with the Consumer Financial Protection Bureau ( CFPB ) and the Federal Trade Commission ( FTC ) if our original settlement is not honored. 

Please confirm in writing that you will honor our original agreement of {$1200.00} and that you will take the necessary steps to have this default judgment vacated upon my completion of the remaining payments. 

I look forward to your prompt response and a resolution to this matter. 

Sincerely,

Company response to consumer: Closed with explanation