OneMain Holdings Inc.
What PE Will Likely Do
Increased fees and interest rates for consumer loans and financial services offered by OneMain Holdings
Reduction in the availability and variety of loan products and financial services provided to customers
Deterioration in the quality of customer service and responsiveness to consumer inquiries and issues
Expected Timeline
“0 to 6 months months”
Announcements about 'streamlining operations' and 'improving efficiency' for OneMain Holdings
“6 to 12 months months”
Initial rounds of staff reductions and branch closures at OneMain Holdings locations
“12 to 24 months months”
Customers begin to experience longer wait times, less personalized service, and fewer loan options from OneMain Holdings
“24 to 48 months months”
Potential reduction in loan approval rates and increase in fees/interest rates as OneMain Holdings focuses on cost-cutting
“48 to 60 months months”
Possibility of OneMain Holdings being restructured, acquired by another firm, or filing for bankruptcy if cost-cutting measures fail to improve profitability
What You Can Do
Actions
Carefully review the terms and conditions of any loan or financial services offered by OneMain Holdings, as fees and interest rates may increase
Be prepared for potential changes in the availability and variety of loan products, as well as a decline in customer service quality
Consider alternative lenders and financial service providers if the quality of service from OneMain Holdings becomes unacceptable
Alternatives
Look for family-owned or employee-owned businesses