A new class action lawsuit investigation is looking into the potentially illegal sales practices of World Finance, OneMain Financial, and Springleaf which may be selling worthless credit insurance and other insurance products with installment loans.
Consumer lawyers are investigating claims that this loan insurance rarely provides any benefit to the consumer, and instead goes right into the pocket of installment loan lenders in the form of kickbacks from the insurer.
Credit insurance supposedly protects the loan in the event that you cannot make your payments. Credit insurance is usually optional, which means you don’t have to purchase it from the lender. However, numerous lenders have come under fire in recent years for using deceptive sales practices to “trick” consumers into purchasing these products.
These insurance products may also allow installment loan lenders to get around rate caps in some states and nearly double the annual percentage rate — without disclosing the final, effective APR to the customer in the loan contract. After insurance premiums are added, the annual rate for installment loans can cost as much as 200% to upwards of 500%.
If you live in Kentucky, Louisiana, Missouri, Oklahoma or Georgia and obtained an installment loan from World Finance, OneMain Financial, Springleaf or one of their affiliates and were charged for credit insurance or loan insurance, you may have a legal claim. Experienced class action lawyers are actively looking for consumers who may have been victims of illegal business conduct.