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Issue Spotlight: Analysis of Deposit Insurance Coverage on Funds Stored Through Payment Apps

https://www.consumerfinance.gov/data-research/research-reports/issue-spotlight-analysis-of-deposit-insurance-coverage-on-funds-stored-through-payment-apps/

Payment apps that allow consumers and businesses to quickly send and send money also often provide the ability for users to store those funds. Funds stored on these platforms often lack deposit insurance coverage and are at risk of loss in the event of financial distress or failure of the entity operating the payment platform.

OneMain Financial Holdings, LLC; OneMain Financial Group, LLC; OneMain Financial (HI), Inc.; OneMain Financial, Inc.; OneMain Financial of Minnesota, Inc.

https://www.consumerfinance.gov/enforcement/actions/onemain-financial-holdings-llc-et-al/

On May 31, 2023, the Consumer Financial Protection Bureau (Bureau) issued an order against OneMain Financial Holdings, LLC; OneMain Financial Group, LLC; OneMain Financial (HI), Inc.; OneMain Financial, Inc.; and OneMain Financial of Minnesota, Inc. (collectively referred to as OneMain). OneMain is an Indiana-based personal loan installment lender with more than 1,400 branches across 44 states.