Is There a Hidden Fee in Your Solar Loan?
Your solar loan may show one price even though your lender actually paid the solar installer thousands of dollars less.
Ponder Legal Group is investigating residential solar loans involving potentially undisclosed dealer fees, platform fees, and other financing charges. If you financed your solar system, we can review your loan documents to determine whether this issue may apply to you.
Contact us now for a free consultation and review of your solar loan.
A Typical Transaction
A financed solar transaction may look straightforward: The installer tells the homeowner the solar project costs a certain amount. The lender then provides loan documents financing that same amount. The homeowner signs the contracts and becomes responsible for repaying the entire loan, plus interest.
But there may be another number the homeowner never sees: the amount the lender actually pays the solar installer. In transactions we are investigating, that amount may be substantially less than the amount the homeowner is required to finance and repay.
Here is an example:
- Solar installation agreement: $50,000.00
- Amount financed by the lender: $50,000.00
- Amount actually paid to the installer: $37,500
- Difference: $12,500.00
The homeowner is still obligated to repay $50,000.00, plus interest, even though the installer only received $37,500.
The question is: What is the $12,500.00 difference, and was it properly disclosed to the homeowner?
Why the Difference May Matter
Ponder Legal Group is investigating whether certain residential solar financing arrangements included undisclosed dealer fees, platform fees, or other credit-related charges in the amount consumers were told was the price of their solar system. Federal law may require these charges to be disclosed as part of the cost of credit.
An undisclosed upfront financing charge can materially increase the true cost of a solar loan - even when the loan advertises a relatively low interest rate.
Understanding TILA Disclosures
The Truth in Lending Act (TILA) requires lenders to clearly disclose important information about the cost of consumer credit, including the:
• Amount financed
• Finance charge
• Annual percentage rate (APR)
• Payment schedule
These disclosures are intended to allow consumers to understand the true cost of financing and compare one credit transaction with another. If a financing charge is improperly included in the stated price of the solar system instead of being disclosed as a cost of credit, the TILA disclosures may understate the true cost of the loan.
Solar Lenders We Are Reviewing
Ponder Legal Group is reviewing financing involving lenders and programs including:
GoodLeap / Loanpal
Dividend Solar Finance / Fifth Third Bank
Service Finance
Sunlight Financial
EnFin
Everbright
Other lenders may have used similar financing structures. You do not need to know whether your loan contains a dealer fee or platform fee before contacting us. That is what we will evaluate.
Have Your Solar Loan Agreement Reviewed
If you financed a residential solar system and want to know whether your loan may contain an undisclosed financing charge, contact Ponder Legal Group.
We need the complete loan agreement and TILA disclosures to meaningfully review the potential claim.
Submit the contact form and let us know:
Who your solar lender is, approximately when you obtained the loan, and the state where the solar system was installed.
We will provide instructions for sending your loan documents.