OneMain Financial
 | |
| Company type | Public |
|---|---|
| Industry | |
| Predecessor | Springleaf Financial CitiFinancial American General Finance |
| Founded | 1912 in Baltimore, Maryland, U.S. |
| Founder |
|
| Headquarters | , |
Area served | U.S. |
Key people |
|
| Products | |
| Revenue |  US$3,658 million (2018) |
| US$1,735 million (2020) | |
| US$855 million (2020) | |
| Total assets | US$20,090 million (2018) |
| Total equity | US$3,799 million (2018) |
Number of employees | 10,200 (2018) |
| Subsidiaries | OneMain Finance Corporation |
| Website | onemainfinancial.com |
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 OneMain 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's roots stretch back to 1912 when it was founded by Alexander E. Duncan as Commercial Credit Company in Baltimore, Maryland. Through a series of mergers and acquisitions, Commercial Credit Company eventually became a subsidiary of Citigroup and was known as CitiFinancial. After the 2008 financial crisis, Citigroup reorganized its business, with the company regarding CitiFinancial as a noncore business that it renamed to OneMain Financial and sought to sell. Meanwhile, Interstate Finance Corporation was founded in Evansville in 1920 and experienced its own series of mergers and acquisitions until it became American General Finance, the consumer finance subsidiary of AIG. In November 2010, Fortress Investment Group purchased a majority stake in American General Finance and renamed it to Springleaf Financial the following year. In September 2015, Springleaf Financial acquired OneMain Financial, with OneMain becoming the surviving brand.
As of December 2019, OneMain had 1,600 branch offices in 44 states.[1] A group of funds managed by Apollo Global Management and Värde Partners currently owns 40.5% of the company.
History
OneMain Financial was formed in November 2010, following Fortress Investment Group's majority purchase of American General Finance from AIG. Fortress subsequently renamed the company to Springleaf Financial and took the company public in April 2015. OneMain in its present form is the result of Springleaf Financial's acquisition of OneMain Financial (formerly CitiFinancial) from Citigroup in September 2015, with OneMain becoming the surviving brand. Both CitiFinancial and American General Finance have their own lines of history as consumer finance companies dating back to the 1910s and 1920s, respectively.
CitiFinancial history (1912–2015)
Commercial Credit Company (CCC) was formed as a public company by Alexander Edward Duncan and a group of eight businessmen in Baltimore, Maryland in 1912. 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 the 1960s
American General Finance history (1920–2010)
OneMain Financial (formerly Springleaf Financial) (2010–present)
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.[citation needed]
In 1920, Interstate Finance Corporation was founded in Evansville, Indiana, to underwrite sales of Inland Motor Truck vehicles.[citation needed] After several acquisitions, the company became a part of AIG in 2001. In 2010, Fortress Investment Group acquired the business from AIG.[citation needed]
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]
References
- ^ "Company Overview February 2019" (PDF). OneMain Financial. Retrieved February 21, 2019.
- ^ Springleaf Financial to Acquire OneMain Financial, March 3, 2015, retrieved January 17, 2017.
- ^ About Us, retrieved January 17, 2017
- ^ 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
- ^ "Bill Text - AB-539 California Financing Law: consumer loans: charges". leginfo.legislature.ca.gov.
- ^ 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.
- ^ "State Laws Put Installment Loan Borrowers at Risk". pew.org.
- ^ "California Legislation to Limit Predatory Lending Excludes Three Lenders". California Globe. 13 June 2019.
External links
- OneMainFinancial.com - Official Website
- iLoan - OneMain Financial’s internet lending division