OneMain Financial

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"Springleaf" redirects here. For other uses, see Springleaf (disambiguation).
OneMain Holdings, Inc.
RevenueIncrease US$4,368 million (2020)
Decrease US$2,022 million (2020)
Decrease US$730 million (2020)
Total assetsDecrease US$22,471 million (2020)
Total equityDecrease US$3,441 million (2020)
Number of employees
Decrease 8,300 (2020)
SubsidiariesOneMain Finance Corporation
Websiteonemainfinancial.com

OneMain Holdings, Inc. is an American

personal loans and optional insurance products to customers with limited access to traditional lenders, such as banks and credit card
companies.

OneMain's roots stretch back to 1912 when it was founded by Alexander E. Duncan as Commercial Credit Company in

AIG. In November 2010, Fortress Investment Group
purchased a majority stake in American General Finance and renamed it to Springleaf Financial the following year. In November 2015, Springleaf Financial acquired OneMain Financial, with OneMain becoming the surviving brand.

As of December 2020, OneMain had approximately 1,500 branch offices in 44 states.[1]

History

OneMain Financial was formed in November 2010, following

AIG.[2] Fortress subsequently renamed the company to Springleaf Financial and took the company public in October 2013.[3][4] OneMain in its present form is the result of Springleaf Financial's acquisition of OneMain Financial (formerly CitiFinancial) from Citigroup in November 2015, with OneMain becoming the surviving brand.[5]
Both CitiFinancial and American General Finance have their own lines of history as consumer finance companies dating back to the 1910s and 1920s, respectively.

CitiFinancial history (1912–2015)

Commercial Credit Company (CCC) was established as a public company by Alexander Edward Duncan and eight businessmen in Baltimore, Maryland in 1912.

WWII and post-war eras. By 1968, the company was the target of a hostile takeover by Loews Corporation, which had already owned 10% of the company's common stock. However, CCC's management sought a different buyer and was able to sway computer company Control Data Corporation (CDC) into acquiring them instead.[7]

CDC initially utilized CCC as a vehicle to assist customers in financing their computer leases and to stabilize earnings due to the seasonality of the computer business. However, as the computer business became more cutthroat and computer leasing was falling in favor of purchasing, CDC's business began to wane in the next decade and a half.

Sandy Weill's proposal to spin-off CCC into its own public company in 1986.[10] Weill, who had just left American Express after not being lined up as its next CEO, claimed to have pursued the deal for the fun and challenge. He and his associates invested their own money to own 10% of CCC, while CDC retained a 20% stake, with the remaining 70% offered to the public.[11][12] Weill brought in experienced management to prop up the business to success, exiting unprofitable segments and tripling operating profits within a year.[13]

OneMain Financial (formerly Springleaf Financial) (2010–present)

In 1912, OneMain Financial was founded by Commercial Credit Company in

Baltimore, Maryland to provide working capital to manufacturers and building contractors. After several acquisitions, the company became a part of Citicorp in 1998 and in 2011 the name was changed to OneMain Financial.[14][15]

In 1920, Interstate Finance Corporation was founded in Evansville, Indiana, to underwrite sales of Inland Motor Truck vehicles.[citation needed] After several acquisitions, the company became a part of AIG in 2001. In 2010, Fortress Investment Group acquired the business from AIG.[citation needed] In 2011, the company changed its name to Springleaf Holdings, Inc. Its brand name became Springleaf Financial Services.

In November 2015, Springleaf Holdings, Inc. acquired OneMain Financial from Citigroup for $4.25 billion.[16] The new company kept the name OneMain Financial.[17]

The United States Department of Justice required Springleaf to sell 127 branches and certain related assets to Lendmark Financial Services, LLC. before the merger.[18] The sale was completed in May 2016. The brand migration from Springleaf Financial to OneMain Financial was completed in October 2016.

A bill introduced in California legislation (Assembly Bill 539)[19] that would limit interest rates notably excludes three lenders, OneMain being one of the three lenders.[20] The reason these lenders are exempt from the bill is because their interest is capped at 36 percent, however according to a Pew study the APR is understated due to the aggressive selling of add-on products.[21]

In April 2021, OneMain Acquired Financial Wellness fintech company Trim.[22]

In May 2023, the Consumer Financial Protection Bureau found that OneMain Financial engaged in unlawful activities related to interest charges and how it marketed optional add-on products to customers. The CFPB ordered OneMain Financial to pay at least $10 million in redress to 25,000 customers, an additional $10 million civil penalty, and to make changes to its add-on cancellation and interest refund practices.[23]

References

  1. ^ "Company Overview February 2019" (PDF). OneMain Financial. Retrieved February 21, 2019.
  2. ^ "Fortress Funds Complete Acquisition of American General Finance". Fortress.com. 30 November 2010. Archived from the original on 1 May 2021. Retrieved 1 May 2021.
  3. ^ "American General Financial Services Announces New Name: Springleaf Financial Services". Business Wire. 14 January 2011. Archived from the original on 1 May 2021. Retrieved 1 May 2021.
  4. ^ "Fortress Wins Big in Turnaround of Subprime Lender Springleaf". Bloomberg News. 17 October 2013. Archived from the original on 1 April 2019. Retrieved 1 May 2021.
  5. ^ "Springleaf Holdings Announces Closing of OneMain Acquisition and Ticker Symbol Change". Business Wire. 16 November 2015. Archived from the original on 1 May 2021. Retrieved 1 May 2021.
  6. ^ "Commercial Credit Company | Encyclopedia.com". www.encyclopedia.com. Retrieved 2021-11-16.
  7. ISSN 0362-4331
    . Retrieved 2021-11-16.
  8. ^ ABRAMOWITZ, MICHAEL (1985-07-03). "Commercial Credit Corp. Moves to Restructure". Los Angeles Times. Retrieved 2021-11-16.
  9. ISSN 0362-4331
    . Retrieved 2021-11-16.
  10. ISSN 0190-8286
    . Retrieved 2021-11-16.
  11. ISSN 0362-4331
    . Retrieved 2021-11-16.
  12. ^ "SPINOFF PUTS WEILL ATOP CREDIT FIRM". Chicago Tribune. Retrieved 2021-11-16.
  13. ^ Stowell, Linda (25 November 1988). "SANDY WEILL TACKLES A NEW CHALLENGE". The Washington Post. Retrieved 16 November 2021.
  14. ^ "Citigroup to sell OneMain Financial to Springleaf Holdings". Sun Sentinel. 4 March 2015. Retrieved 11 April 2024.
  15. ^ reports, Staff (6 July 2011). "CitiFinancial changes name to OneMain Financial". The Holland Sentinel. Retrieved 11 April 2024.
  16. ^ Springleaf Financial to Acquire OneMain Financial, March 3, 2015, retrieved January 17, 2017.
  17. ^ About Us, retrieved January 17, 2017
  18. ^ Justice Department Requires Springleaf to Divest 127 Branches in 11 States in Order to Complete Acquisition of OneMain Financial, November 13, 2015, retrieved January 17, 2017
  19. ^ "Bill Text - AB-539 California Financing Law: consumer loans: charges". leginfo.legislature.ca.gov.
  20. ^ Wiley, Hannah. "The interest rate on these loans can top 100% in California. Does a 36% cap solve the problem?". The Sacramento Bee. Retrieved 26 July 2019.
  21. ^ "State Laws Put Installment Loan Borrowers at Risk". pew.org.
  22. ^ Personal Loan Provider OneMain Acquires Financial Wellness FinTech Trim, April 26, 2021, retrieved July 18, 2023
  23. ^ CFPB Orders Installment Lender OneMain to Pay $20 Million for Deceptive Sales Practices, May 31, 2023, retrieved June 4, 2023

External links

Further reading

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