US: Pa. attorney general joins antitrust lawsuit against financial companies

Pennsylvania has joined with six other states to file a federal antitrust lawsuit in an attempt to block a proposed merging of two financial companies that have offices in Beaver County.

The lawsuit concerns the proposed acquisition of OneMain Financial by another company called Springleaf Holdings Inc.

Springleaf, a financial services company, has a branch in Center Township, while OneMain has locations in Chippewa Township and East Liverpool, Ohio.

According to a release from Pennsylvania Attorney General Kathleen Kane, the financial companies are two of the largest providers of installment loans to subprime borrowers in the country.

The attorney general claimed the merger of the two companies would have a negative impact on consumers as there would be less competition in local markets.

Another factor in the lawsuit is that the two companies are extremely similar in terms of business model, clientele and a “large degree of geographic overlap between their branch networks.”

Springleaf operates its corporate headquarters out of Indiana while OneMain is headquartered in Maryland.

The other states involved in the lawsuit are Colorado, Idaho, Texas, Virginia, Washington and West Virginia.

Full content: The Times

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.