Recently, issues have emerged regarding solar panel financing companies that may be engaging in deceptive tactics concerning hidden fees. At Gray & White, we are dedicated to safeguarding consumers nationwide from unfair lending practices.
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What’s the Problem?
Many homeowners are opting for solar energy to save money and lessen their environmental footprint. However, certain solar panel financing companies, including Solar Mosaic, LLC, GoodLeap, LLC, Sunlight Financial, LLC, and Dividend Solar Finance, LLC, may be misleading customers by:
- Concealing Fees: The financing company may not fully disclose all loan fees in the Truth in Lending Act (TILA) disclosures you receive. A vital figure for calculating your finance charges is the “Amount Financed,” and if this figure is inaccurate, you could end up paying more than you expect.
- Inflating Loan Costs: By underreporting the actual cost of the loan in the TILA disclosures, these companies might charge you more in finance charges than you initially agreed to.
Understanding TILA Disclosures
TILA is a federal law aimed at protecting borrowers by ensuring lenders provide clear and accurate information about loan terms, which includes:
- Finance Charge: The total cost of borrowing, expressed as an annual percentage rate (APR).
- Amount Financed: The total amount of credit borrowed.
- Payment Schedule: The number, amount, and timing of your loan payments.
Additionally, state regulations and consumer protection laws exist to further safeguard residents from these exploitative practices.
How Hidden Fees Impact You
When a solar panel financing company fails to fully disclose all loan fees in the TILA disclosures, it can have significant financial repercussions:
- Increased Finance Charges: The “Amount Financed” is used to calculate your finance charge. If this amount is artificially low due to undisclosed fees, you’ll pay more in interest over the life of the loan.
- Budgeting Challenges: Undisclosed hidden fees make it difficult to budget accurately for loan payments, potentially leading to financial strain.
- Limited Options: With a lack of transparency regarding the true cost of the loan, you may struggle to compare offers effectively and secure the most suitable financing option for your needs.
An Example of the Solar Panel Hidden Fee Scheme
In a typical hidden fee scheme, a solar equipment finance company collaborates with a solar panel installation company to solicit in-home sales. This scheme typically involves:
- Quoting a price to the customer that is inflated by 10-30% over the cash price of the equipment and installation.
- The consumer being asked to sign loan documents with the finance company for this significantly inflated price, which states that the full amount will be disbursed to the installer.
- The finance company then disburses far less than the stated loan amount, retaining the difference as a hidden fee.
- The loan documents fail to disclose that a significant portion of the fee is never disbursed.
- The hidden fee often exceeds 25% of the stated loan amount.
This deceptive practice forces borrowers to pay monthly principal and interest on an amount that was never disbursed, violating TILA and state consumer protection laws that mandate upfront disclosure of all finance charges.
What You Can Do
If you suspect that your solar loan TILA disclosures may be inaccurate or incomplete, consider taking the following steps:
- Review Your Loan Documents: Carefully examine your TILA disclosures and loan agreement for any inconsistencies.
- Contact Your Lender: Share your concerns with your solar panel financing company and seek clarification on the fees associated with your loan.
- Seek Legal Advice: Consult an experienced attorney with consumer protection law experience to learn about your rights and explore potential legal remedies if you believe your TILA disclosures were misleading.
Gray & White: We Support Consumers Across the Nation
Gray & White founders Mark Gray and Matt White are nationally recognized attorneys who focus their practice in consumer protection. For the past decade, Law Dragon has listed both as leaders in the field.
At Gray & White, we are dedicated to defending consumers from deceptive lending practices in the solar panel financing sector. If you suspect inaccuracies in your solar loan TILA disclosures, we can assist you by:
- Reviewing your loan documents to identify potential discrepancies.
- Communicating with your lender on your behalf.
- Exploring your legal options to ensure you receive fair treatment.
Schedule a Free Consultation Today!
Don’t let hidden fees erode your hard-earned savings. Contact Gray & White online today or call 502-210-8942 for a free consultation regarding your solar loan concerns. We will help you understand your rights and explore possible avenues for resolving any issue.