New York Attorney General Letitia James and a coalition of 12 other attorneys general filed a lawsuit against OneMain Holdings (NYSE: OMF) and its units, alleging the company misled customers and trapped borrowers in expensive loans with hidden costs.

The lawsuit claims OneMain exploits vulnerable customers by adding expensive and often unnecessary additional products to their loans without consumers' knowledge or by misleading them about the products' terms and costs. The attorneys general allege these practices violate state and federal consumer protection laws.

The coalition seeks restitution for consumers who were charged for these products, penalties, and disgorgement of unlawful profits. The attorneys general also want a court order preventing OneMain from continuing the alleged illegal practices.

Additional relief sought includes ordering OneMain to withdraw negative information reported to credit agencies and to abandon legal proceedings against customers related to add-on products.

The attorneys general from Colorado, Maryland, Nevada, New Hampshire, New Jersey, North Dakota, Oklahoma, Pennsylvania, South Dakota, Virginia, Washington and Wisconsin joined the lawsuit alongside New York.