OneMain Financial Holdings, LLC Consumer Loan Complaint

OneMain Financial Holdings, LLC Consumer Loan department,

Installment loan Taking out the loan or lease Colorado

I closed on a personal loan from Springleaf on - in the amount of $2500.00. Interest rate in the LOAN AGREEMENT AND DISCLOSURE STATEMENT dated -, page -, indicated a : CONTRACT RATE of 26.26 % per year. On page - of the above statement is the following : GOVERNING LAW. The laws of the State of Colorado shall govern this Agreement, except as preempted by federal law.I read in the - - that on -, Governor - vetoed House Bill -, pertaining to subprime loan interest rates, partial quote from said article below : " Gov. - - vetoed a bill Thursday that would have caused people who borrow from subprime lenders to pay up to 36 percent interest on the first $3000.00. Lenders can continue to ask for 36 percent on the first $1000.00, but from $1000.00 to $3000.00 the interest rate remains at 21 percent and 15 percent for all amounts over $3000.00 " Key in those excerpts is in the second paragraph, which states that : '' Lenders can continue


on interest rates for various loan amounts, too verbose to include here. Key in the - passage is the phrase " may contract for '' 36 % on balances less than or equal to $ -.I contacted Springleaf Customer Service on - by phone in an attempt to get an explanation of why my loan 's interest rate was higher than 21 %, since the amount financed was $2500.00. They were unable to answer my question and transferred me to Springleaf 's Executive Customer Service representative -. After my explanation of why I was questioning the 26.26 % interest rate, - indicated that she 'd have to consult with their legal department and that she 'd contact me upon receiving Legal ' s opinion.On - I received a call from - informing me that the legal department was still looking into the matter and that she 'd contact me when they reached a conclusion.On -, I received a call from - in which she stated that, according to Springleaf Legal, the first $1000.00 of the loan had its interest rate set at 35.99 %, and the remainder of the loan balance was under a 21 % interest rate, hence the " blended '' rate of 26.26 %. She stated that Legal felt they were not violating Colorado law since in this case a split or blended interest rate was applied to the loan.NOWHERE IN ANY OF THE SPRINGLEAF LOAN DOCUMENTS I READ, SIGNED OR WAS GIVEN AT CLOSING WAS ANY MENTION MADE OF A 35.99 % INTEREST RATE, NOR WAS ANY MENTION MADE OF A SPLIT OR BLENDED INTEREST RATE.It is my contention that this loan was offered under fraudulent and deceptive pretenses, since absolutely no mention was made of the usurious rate on the first $1000.00 or of the split/blended rate to be applied to this loan 's balance. This was not a $1000.00 loan, it was a $2500.00 loan.I was also told that since this was a short term ( 3 years ) loan, the 35.99 % rate was applicable. I was n't aware that a 3 year loan was considered a short term loan. Had I been aware of the splitting up of the loan balance into the 35.99 % and 21 % rates, I WOULD NOT HAVE ENTERED INTO THIS CONTRACT and would have sought the needed funds elsewhere. I was never informed of a split 35.99 % interest rate until I questioned Customer Service about it. It is my opinion that the split interest rates I 've described above were applied in a disingenuous and deceitful manner and that this was executed by Springleaf as perhaps an attempted work-around to the recently vetoed - to defeat the intent of - -. No attempt whatsoever was made to inform me of a tiered interest rate structure for my loan. The loan amount was for $ -, not -