OneMain Financial

OneMain Holdings, Inc. is an American financial services holding company headquartered in Evansville, Indiana, with central offices throughout the United States. The company wholly owns Springleaf Finance Corporation and its subsidiaries, through which it operates in the consumer finance and insurance industries as OneMain Financial. Its business primarily focuses on providing personal loans and optional insurance products to customers with limited access to traditional lenders, such as banks and credit card companies.

OneMain Holdings, Inc.
Public
Traded as
Industry
PredecessorSpringleaf Financial
CitiFinancial
Founded1912 (1912) in Baltimore, Maryland, U.S.
Founder
  • Alexander E. Duncan
Headquarters
Evansville, Indiana
,
United States
Area served
U.S.
Key people
Products
Revenue US$3,658 million (2018)
US$1,735 million (2018)
US$855 million (2019)
Total assets US$20,090 million (2018)
Total equity US$3,799 million (2018)
Number of employees
 10,200 (2018)
SubsidiariesSpringleaf Finance Corporation
Websiteonemainfinancial.com

OneMain in its present form is a result of Springleaf Holdings, Inc.’s acquisition of Baltimore-based OneMain Financial (formerly known as CitiFinancial) from Citigroup in September 2015, with OneMain becoming the surviving brand. As of December 2019, it had 1,600 branch offices in 44 states.[1]

History

In 1912, OneMain Financial was founded by commercial credit 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.

In 1920, Interstate Finance Corporation was founded in Evansville, Indiana, to underwrite sales of Inland Motor Truck vehicles. After several acquisitions, the company became a part of AIG in 2001. In 2010, Fortress Investment Group acquired the business from AIG.

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.[2] The new company kept the name OneMain Financial.[3]

The United States Department of Justice required Springleaf to sell 127 branches and certain related assets to Lendmark Financial Services, LLC. before the merger.[4] 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)[5] that would limit interest rates notably excludes three lenders, OneMain being one of the three lenders.[6] The reason these lenders are exempt from the bill is because their interest is capped at 36 percent, however according to a Pew study[7] the APR is understated due to the aggressive selling of add-on products.[8]

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References
  1. "Company Overview February 2019" (PDF). OneMain Financial. Retrieved February 21, 2019.
  2. Springleaf Financial to Acquire OneMain Financial, March 3, 2015, retrieved January 17, 2017.
  3. About Us, retrieved January 17, 2017
  4. 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
  5. "Bill Text - AB-539 California Financing Law: consumer loans: charges". leginfo.legislature.ca.gov.
  6. 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.
  7. "State Laws Put Installment Loan Borrowers at Risk". pew.org.
  8. "California Legislation to Limit Predatory Lending Excludes Three Lenders". California Globe. 13 June 2019.
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