OneMain Financial
| Company type | Public |
|---|---|
| Industry | Financial services |
| Founded | 1912 |
| Headquarters | Evansville , United States |
Area served | United States |
| Products | Personal loans, optional insurance |
Number of employees | (2020) |
| Website | onemainfinancial |
OneMain Holdings, Inc. is a U.S.-based financial services holding company with its headquarters in Evansville, Indiana. It operates nationwide through its subsidiary, OneMain Finance Corporation, specializing in offering personal loan products and optional insurance to individuals who have limited borrowing opportunities from conventional sources such as banks and credit card issuers.
The company’s origins date back to 1912 when Alexander E. Duncan established Commercial Credit Company in Baltimore, Maryland. Over time, through various mergers and acquisitions, the entity evolved into CitiFinancial under the ownership of Citigroup. Following the 2008 financial crisis, Citigroup designated CitiFinancial as a non-core asset and pursued its divestiture. Meanwhile, Interstate Finance Corporation, founded in Evansville in 1920, transformed into American General Finance under the umbrella of AIG. Fortress Investment Group acquired a controlling interest in American General Finance in 2010 and rebranded it as Springleaf Financial. In 2015, Springleaf purchased OneMain Financial, with the latter’s name continuing forward as the primary brand.
As of December 2020, OneMain maintained roughly 1,500 branch locations across 44 states.
History
OneMain Financial emerged in November 2010 after Fortress Investment Group acquired American General Finance from AIG. Following the acquisition, Fortress rebranded the company as Springleaf Financial and took it public in October 2013. The present-day OneMain was formed when Springleaf acquired OneMain Financial (previously CitiFinancial) from Citigroup in November 2015, choosing to preserve the OneMain brand identity. Both CitiFinancial and American General Finance have roots tracing back to consumer finance firms established in the early 1900s.
CitiFinancial history (1912–2015)
Commercial Credit Company (CCC) was launched in Baltimore in 1912 by Alexander Edward Duncan and his partners, initially providing loans secured by receivables to businesses. Over the following decades, CCC diversified into areas including auto financing, personal loans, insurance offerings, and even manufacturing during wartime. In 1968, amid an attempted hostile takeover by Loews Corporation, CCC’s leadership opted instead for acquisition by Control Data Corporation (CDC).
CDC utilized CCC to support financing for computer leases and to smooth out earnings volatility; however, as computer leasing demand declined, CDC’s primary business suffered. Although CCC expanded its financial services portfolio during this period, it fell behind competitors. By 1984, CDC sought to sell CCC but withdrew after receiving unsatisfactory bids. In 1986, under Sandy Weill’s leadership, CCC was spun off into a public company with Weill investing alongside CDC. Weill recruited seasoned executives, divested unprofitable segments, and succeeded in tripling operating profits within one year.
OneMain Financial (formerly Springleaf Financial) (2010–present)
Originally founded as Commercial Credit Company in Baltimore, Maryland in 1912 to provide working capital financing for manufacturers and contractors, OneMain Financial underwent numerous acquisitions and became part of Citicorp in 1998 before adopting the OneMain Financial name in 2011.
Interstate Finance Corporation was established in Evansville, Indiana in 1920 and later integrated into AIG by 2001. Fortress Investment Group purchased it from AIG in 2010 and rebranded it as Springleaf Holdings, Inc., launching the Springleaf Financial Services brand in 2011.
In November 2015, Springleaf Holdings completed a $4.25 billion acquisition of OneMain Financial from Citigroup, retaining the OneMain Financial brand name. The merger required divestiture of 127 branches to Lendmark Financial Services as mandated by the United States Department of Justice, with that transaction concluding in May 2016. The rebranding transition from Springleaf to OneMain was finalized by October 2016.
California’s Assembly Bill 539 imposes limits on interest rates but exempts OneMain along with two other lenders since their rates are capped at 36%. However, a Pew study indicates that the effective APR may be understated due to sales of add-on products.
In April 2021, OneMain ventured into financial wellness by acquiring fintech firm Trim.
In May 2023, the Consumer Financial Protection Bureau determined that OneMain engaged in illegal practices concerning interest charges and marketing of optional add-on products. The CFPB mandated that OneMain provide at least $10 million in customer restitution alongside an additional $10 million civil penalty and required reforms to its cancellation and refund procedures.
External links
- OneMainFinancial.com – Official corporate website
- iLoan – Online lending platform operated by OneMain Financial