Subprime Lender Thrives While Colorado Consumers Struggle

OneMain is the largest subprime installment lender in the nation operating 1,800 branches in 44 states and by far the biggest fish in Colorado’s subprime lending sector. OneMain offers loans to borrowers with subprime credit. These are not payday loans. The loans average about $6,000 with a repayment period of 3 to 6 years and an average annual interest rate of around 26 percent. These loans can be deceptively expensive for borrowers. And if OneMain has its way, Coloradans will pay even more to borrow.

In 2015 and 2016, OneMain pursued legislation to raise interest rates on Colorado borrowers, part of a national strategy targeting state legislatures across the country to increase costs for subprime borrowers.

To better understand the terms of these loans and the implications for Colorado borrowers, the Colorado Center on Law & Policy reviewed nearly 200 collection cases filed by OneMain against delinquent borrowers in Denver County Court.

CCLP partnered with the Center for Responsible Lending and the Bell Policy Center in developing this analysis. Funding for this work was provided by the Colorado Health Foundation, which is supporting the work of the Fair Lending for a Thriving Colorado Coalition focused on protecting consumers from predatory lending practices while championing access to safe and reliable capital.

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To learn more about the findings and analysis in this report please contact: Michelle Webster, Director of Policy Research and Analysis at CCLP