At Ponder Legal Group, we're committed to protecting consumers across the country from unfair lending practices. Recently, concerns have been raised about solar panel financing companies engaging in deceptive practices regarding hidden fees.
What's the Problem?
Many residents are choosing solar energy to save money and reduce their environmental impact. However, some solar panel financing companies, such as Solar Mosaic, LLC, GoodLeap, LLC, Sunlight Financial, LLC, and Dividend Solar Finance, LLC, may be deceiving customers by:
- Hiding fees: They might not accurately disclose all the fees associated with your loan in the Truth in Lending Act (TILA) disclosures you receive. A crucial number used to calculate your finance charges is the "Amount Financed," and if this is inaccurate, you'll be charged more.
- Inflating loan costs: By underestimating the true cost of the loan in the TILA disclosures, these companies may be charging you more in finance charges than you agreed to.
Understanding TILA Disclosures
TILA is a federal law designed to protect borrowers by ensuring lenders provide clear and accurate information about loan terms, including:
- Finance charge: The total borrowing cost, 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.
There are also state regulations and consumer protection laws that can help protect residents from these schemes.
How Hidden Fees Hurt You
If a solar panel financing company fails to disclose all loan fees in the TILA disclosures, it can significantly impact you financially:
- Higher finance charges: The "Amount Financed" is used to calculate your finance charge. If it's artificially low due to hidden fees, you'll end up paying more in interest over the loan's life.
- Budgeting difficulties: When hidden fees are not disclosed, it's difficult to accurately budget for loan payments, leading to potential financial strain.
- Limited options: Without full transparency about the true cost of the loan, you may not be able to compare offers effectively and secure the best financing option for your needs.
An Example of the Hidden Fee Scheme
In a typical Hidden Fee Scheme, a solar equipment finance company engages a solar panel equipment installation company to solicit in-home sales. This scheme involves:
- The price quoted to the customer is inflated is usually 10-30% higher the cash price of the equipment and installation.
- The consumer signs loan documents with the finance company for the significantly inflated price. The loan documents typically state the full amount will be disbursed to the installer.
- The finance company than disburses far less than the stated loan amount and retains the difference between the loan amount and the amount paid to the installer as a hidden fee.
- The loan documents do not disclose that finance company never disburses a significant portion of the fee.
- The hidden fee is often over 25% of the stated loan amount.
The solar panel finance company never disclosed this hidden fee to the borrower, forcing them to pay monthly principal and interest on an amount that was never even disbursed. This practice is illegal under TILA and state consumer protection laws, which requires lenders to disclose all finance charges upfront.
What You Can Do
If you suspect your solar loan TILA disclosures may be inaccurate or incomplete, here are some steps you can take:
- Review your loan documents: Carefully examine your TILA disclosures and loan agreement for any discrepancies.
- Contact your lender: Raise your concerns with your solar panel financing company and request clarification on the fees associated with your loan.
- Seek legal advice: An experienced attorney specializing in consumer protection law can help you understand your rights and explore potential legal options if you believe your TILA disclosures were inaccurate.
Ponder Legal Group: Here to Help Consumers Across the Nation
At Ponder Legal Group, we are committed to protecting consumers from deceptive lending practices in the solar panel financing industry. If you suspect your solar loan TILA disclosures were inaccurate, we can help you:
- Review your loan documents and identify potential discrepancies.
- Communicate with your lender on your behalf.
- Explore your legal options to ensure you are treated fairly.
Schedule a Free Consultation Today!
Don't let hidden fees drain your hard-earned savings. Contact Ponder Legal Group today for a free consultation to discuss your solar loan concerns. We'll help you understand your rights and explore potential options for resolving the issue.