OneMain Financial

OneMain Financial was formed in November 2010, following Fortress Investment Group's majority purchase of American General Finance from AIG.{{cite web |title=Fortress Funds Complete Acquisition of American General Finance |work=Fortress.com |date=30 November 2010 |access-date=1 May 2021 |url=https://www.fortress.com/shareholders/news/2010-11-30-fortress-funds-complete-acquisition-of-american-general-finance |archive-url=https://web.archive.org/web/20210501165810/https://www.fortress.com/shareholders/news/2010-11-30-fortress-funds-complete-acquisition-of-american-general-finance |archive-date=1 May 2021 |url-status=live}} Fortress subsequently renamed the company to Springleaf Financial and took the company public in October 2013.{{cite web |title=American General Financial Services Announces New Name: Springleaf Financial Services |work=Business Wire |date=14 January 2011 |access-date=1 May 2021 |url=https://www.businesswire.com/news/home/20110114005036/en/American-General-Financial-Servicessm-Announces-New-Name-Springleaf-Financial-Services |archive-url=https://web.archive.org/web/20210501170204/https://www.businesswire.com/news/home/20110114005036/en/American-General-Financial-Servicessm-Announces-New-Name-Springleaf-Financial-Services |archive-date=1 May 2021 |url-status=live}}{{cite web |title=Fortress Wins Big in Turnaround of Subprime Lender Springleaf |work=Bloomberg News |date=17 October 2013 |access-date=1 May 2021 |url=https://www.bloomberg.com/news/articles/2013-10-17/fortress-wins-big-in-turnaround-of-subprime-lender-springleaf |archive-url=https://web.archive.org/web/20190401042811/https://www.bloomberg.com/news/articles/2013-10-17/fortress-wins-big-in-turnaround-of-subprime-lender-springleaf |archive-date=1 April 2019 |url-status=live}} 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.{{cite web |title=Springleaf Holdings Announces Closing of OneMain Acquisition and Ticker Symbol Change |work=Business Wire |date=16 November 2015 |access-date=1 May 2021 |url=https://www.businesswire.com/news/home/20151116006545/en/Springleaf-Holdings-Announces-Closing-of-OneMain-Acquisition-and-Ticker-Symbol-Change |archive-url=https://web.archive.org/web/20210501172656/https://www.businesswire.com/news/home/20151116006545/en/Springleaf-Holdings-Announces-Closing-of-OneMain-Acquisition-and-Ticker-Symbol-Change |archive-date=1 May 2021 |url-status=live}} Both CitiFinancial and American General Finance have their own lines of history as consumer finance companies dating back to the 1910s and 1920s, respectively.

Commercial Credit Company (CCC) was established as a public company by Alexander Edward Duncan and eight businessmen in Baltimore, Maryland in 1912.{{Cite web|title=Commercial Credit Company {{!}} Encyclopedia.com|url=https://www.encyclopedia.com/books/politics-and-business-magazines/commercial-credit-company|access-date=2021-11-16|website=www.encyclopedia.com}} It began as a lender of capital to companies with their accounts receivable as security. Over the course of several decades, CCC adapted to the changing times, expanding into auto financing and personal lending, maneuvering into insurance to provide coverage for the products it was financing, and even manufacturing war-related goods during the 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.{{Cite news|last=Bender|first=Marylin|date=1973-02-18|title=Loews and Its 'Mutual Fund'|language=en-US|work=The New York Times|url=https://www.nytimes.com/1973/02/18/archives/loews-and-its-mutual-fund-loews-and-its-fund-a-mutual-fund-for.html|access-date=2021-11-16|issn=0362-4331}}

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.{{Cite web|last=ABRAMOWITZ|first=MICHAEL|date=1985-07-03|title=Commercial Credit Corp. Moves to Restructure|url=https://www.latimes.com/archives/la-xpm-1985-07-03-fi-10372-story.html|access-date=2021-11-16|website=Los Angeles Times|language=en-US}} Meanwhile, CCC accounted for more and more of their profits as it expanded its financial services, but it was unable to keep up with industry peers. In 1984, CDC tried to find a buyer for CCC, but could not sell it for the right price.{{Cite news|last1=Pollack|first1=Andrew|last2=Times|first2=Special To the New York|date=1986-01-11|title=AN ERA ENDS AT CONTROL DATA|language=en-US|work=The New York Times|url=https://www.nytimes.com/1986/01/11/business/an-era-ends-at-control-data.html|access-date=2021-11-16|issn=0362-4331}} It subsequently withdrew CCC from the market and accepted Sandy Weill's proposal to spin off CCC into its own public company in 1986.{{Cite news|last=Vise|first=David A.|date=1986-11-03|title=Executives See Finance Firm Opportunities|language=en-US|newspaper=Washington Post|url=https://www.washingtonpost.com/archive/business/1986/11/03/executives-see-finance-firm-opportunities/f025a35f-cd16-4ace-9d3a-b1555e6dddd3/|access-date=2021-11-16|issn=0190-8286}} 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.{{Cite news|last=Cole|first=Robert J.|date=1986-09-13|title=CONTROL DATA UNIT GETS WEILL|language=en-US|work=The New York Times|url=https://www.nytimes.com/1986/09/13/business/control-data-unit-gets-weill.html|access-date=2021-11-16|issn=0362-4331}}{{Cite web|title=SPINOFF PUTS WEILL ATOP CREDIT FIRM|url=https://www.chicagotribune.com/news/ct-xpm-1986-09-13-8603080485-story.html|access-date=2021-11-16|website=Chicago Tribune|language=en}} Weill brought in experienced management to prop up the business to success, exiting unprofitable segments and tripling operating profits within a year.{{Cite news|last=Stowell|first=Linda|date=25 November 1988|title=SANDY WEILL TACKLES A NEW CHALLENGE|newspaper=The Washington Post|url=https://www.washingtonpost.com/archive/business/1988/11/25/sandy-weill-tackles-a-new-challenge/4437d623-144a-4b00-a091-6049aec1aa17/|access-date=16 November 2021}}

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.{{cite news |title=Citigroup to sell OneMain Financial to Springleaf Holdings |url=https://www.sun-sentinel.com/2015/03/04/citigroup-to-sell-onemain-financial-to-springleaf-holdings/ |access-date=11 April 2024 |work=Sun Sentinel |date=4 March 2015}}{{cite news |author=Staff reports |title=CitiFinancial changes name to OneMain Financial |url=https://www.hollandsentinel.com/story/news/2011/07/06/citifinancial-changes-name-to-onemain/45279098007/ |access-date=11 April 2024 |work=The Holland Sentinel |date=6 July 2011}}

In 1920, Interstate Finance Corporation was founded in Evansville, Indiana, to underwrite sales of Inland Motor Truck vehicles.{{Citation needed|date=March 2020}} After several acquisitions, the company became a part of AIG in 2001. In 2010, Fortress Investment Group acquired the business from AIG.{{Citation needed|date=March 2020}} 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.{{citation | url=http://www.businesswire.com/news/home/20150303005359/en/Springleaf-Financial-Acquire-OneMain-Financial | title=Springleaf Financial to Acquire OneMain Financial | date=March 3, 2015 | access-date=January 17, 2017}}. The new company kept the name OneMain Financial.{{citation | url=https://www.onemainfinancial.com/about-us | title=About Us | access-date=January 17, 2017}}

The United States Department of Justice required Springleaf to sell 127 branches and certain related assets to Lendmark Financial Services, LLC. before the merger.{{citation | url=https://www.justice.gov/opa/pr/justice-department-requires-springleaf-divest-127-branches-11-states-order-complete | title=Justice Department Requires Springleaf to Divest 127 Branches in 11 States in Order to Complete Acquisition of OneMain Financial | date=November 13, 2015 | access-date=January 17, 2017}} 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){{cite web |title=Bill Text - AB-539 California Financing Law: consumer loans: charges. |url=https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB539 |website=leginfo.legislature.ca.gov}} that would limit interest rates notably excludes three lenders, OneMain being one of the three lenders.{{cite news |last1=Wiley |first1=Hannah |title=The interest rate on these loans can top 100% in California. Does a 36% cap solve the problem?|url=https://www.sacbee.com/news/politics-government/capitol-alert/article231396133.html |access-date=26 July 2019 |publisher=The Sacramento Bee}} 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.{{cite web |title=State Laws Put Installment Loan Borrowers at Risk |url=https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2018/11/05/state-laws-put-installment-loan-borrowers-at-risk |website=pew.org}}

In April 2021, OneMain Acquired Financial Wellness fintech company Trim.{{citation | url=https://www.pymnts.com/news/partnerships-acquisitions/2021/personal-loan-provider-onemain-acquires-financial-wellness-fintech-trim/ | title=Personal Loan Provider OneMain Acquires Financial Wellness FinTech Trim

| date=April 26, 2021 | access-date=July 18, 2023}}

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.{{citation | url=https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-installment-lender-onemain-to-pay-20-million-for-deceptive-sales-practices/ | title=CFPB Orders Installment Lender OneMain to Pay $20 Million for Deceptive Sales Practices | date=May 31, 2023 | access-date=June 4, 2023}}

{{Reflist}}

• [https://www.onemainfinancial.com/ OneMainFinancial.com] - Official Website
• [https://iloan.com iLoan] - OneMain Financial’s internet lending division

• [https://www.nytimes.com/2003/07/17/business/changing-the-guard-market-place-a-climb-to-riches-one-merger-at-a-time.html CHANGING THE GUARD: MARKET PLACE; A Climb to Riches, One Merger at a time]
• [https://www.nytimes.com/1986/11/27/business/talking-deals-weill-issue-s-big-following.html TALKING DEALS; Weill Issue's Big Following]

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Category:Financial services companies established in 1912

Category:Financial services companies of the United States

Category:2010 mergers and acquisitions

Category:Companies listed on the New York Stock Exchange