PIERRE, S.D. – South Dakota Attorney General Marty Jackley has joined a bipartisan group of 13 attorneys general in a lawsuit against OneMain Financial, Inc., alleging the company used misleading tactics to trap borrowers in expensive loans with hidden costs.

The lawsuit claims the lender utilized a bait-and-switch scheme to pack loans with unnecessary insurance policies and add-on products. OneMain Financial currently operates several branches across South Dakota, including locations in Rapid City, Sioux Falls, and Watertown. While the litigation is ongoing, officials have not yet determined the exact number of South Dakota residents affected by these practices.

“This company packs its loans with often senseless insurance policies and other add-on products,” Jackley said. “South Dakota consumers are being forced to pay for services they never agreed to and didn’t need.”

According to the complaint, OneMain allegedly rushed customers through the loan process, often using smartphones where fine print was reduced to a fraction of its normal size. The lawsuit further alleges that the company pre-populated loan agreements with every possible add-on and controlled computer screens during closings to prevent borrowers from reviewing the documents.

The legal action also details an elaborate sales process where employees were allegedly pressured to hide add-on products within dozens of pages of legalese. In many cases, consumers reportedly only discovered the true cost of their loans after the transactions were completed.

The coalition of attorneys general includes representatives from Colorado, Maryland, Nevada, New Hampshire, New Jersey, New York, North Dakota, Oklahoma, Pennsylvania, Virginia, Washington, and Wisconsin. The legal challenge seeks to address deceptive refinancing practices and the lack of transparency regarding key loan terms.