Direct Claims Against Solar Lenders: What the FTC and State Law Say

Solar financing can be daunting, especially for homeowners who simply want to make an eco-friendly investment in their future. But what happens when those lenders fail to uphold their promises or engage in deceptive practices?  

Unfortunately, many consumers find themselves locked into unfavorable agreements and face unexpected challenges without clear support. Therefore, it's important to understand your rights and the protections available under the Federal Trade Commission (FTC) and state laws.

Attorney Macy D. Hanson is well-versed in the legal challenges surrounding solar financing, helping clients pursue direct claims against solar lenders while navigating the legal guidelines set by the Federal Trade Commission (FTC) and state-level consumer protection laws. 

This blog post explores common issues in solar financing, the applicable laws governing consumers' rights, and how you can take legal action to protect yourself against predatory lending practices in the solar industry.  

Common Issues with Solar Financing Agreements 

While the promise of renewable energy is appealing, many consumers encounter difficulties when purchasing or financing solar panels. Unfortunately, deceptive practices in the solar industry are not uncommon. Some of the most frequent issues include: 

• Misleading sales tactics: Some solar companies employ high-pressure or misleading sales tactics to push consumers into signing agreements they do not fully understand. Misrepresentations about energy savings, tax credits, or system ownership can lead to financial hardships. 

• Opaque financing terms: Solar lenders may obscure the costs and terms of financing agreements, making it difficult for consumers to understand what they are paying for the service. This includes hidden fees, variable interest rates, or balloon payments. 

• Underperformance of solar panels: Consumers may find that their solar panels do not produce the energy savings promised during the sales process. Some agreements fail to include performance guarantees, leaving the consumer financially burdened with ineffective panels. 

• Illegal practices in contract assignments: Solar financing contracts are often assigned to third-party lenders without proper notice to consumers, leading to unfamiliar creditors attempting to enforce questionable obligations. 

These issues can leave consumers feeling helpless, but there are legal ways to hold solar lenders accountable. The Law Office of Macy D. Hanson, PLLC helps individuals understand and assert their rights against solar lenders, particularly in cases involving misrepresentation, fraudulent practices, or violations of state and federal laws.  

If you've encountered deceptive solar practices, call the Law Office of Macy D. Hanson, PLLC. The firm offers free consultations to anyone facing issues with solar lenders or contracts. 

Federal Trade Commission Guidelines and Consumer Rights 

The FTC plays a critical role in protecting consumers from unfair or deceptive business practices across industries, including solar energy. Under Section 5 of the FTC Act, businesses are prohibited from engaging in practices that could be misleading, fraudulent, or otherwise harmful to consumers.  

Solar lenders and companies can face legal action from both individuals and federal authorities if their practices violate these rules. For example, a solar lender may violate the FTC Act by failing to disclose essential terms of a financing agreement, such as the total cost of the loan or the consequences of default.  

Similarly, a manufacturer's false claims about energy savings or government incentives could be grounds for legal action under the FTC's truth-in-advertising standards. When solar lenders or contractors fail to abide by these rules, consumers have the right to pursue direct legal claims to recover financial losses and prevent further damage.  

Attorney Macy D. Hanson has experience using FTC guidelines as a foundation for legal strategies. His goal is to help his clients receive the full protections afforded to them under federal and state law.  

Protections Under State Law 

State laws further protect consumers from fraudulent and unfair practices in the solar financing industry. Many states enforce their own consumer protection statutes, such as Unfair and Deceptive Acts and Practices (UDAP), which help individuals harmed by misrepresentation, fraud, or contractual breaches. 

In Mississippi, various state laws are in place to protect consumers entering into contracts, including those related to solar energy agreements. Some of the state laws you should be aware of include the following:

• The Mississippi Consumer Protection Act prohibits deceptive trade practices, fraudulent misrepresentation, and failure to disclose material information in business transactions.
  

• Mississippi Home Solicitation Sales Act protects consumers from high-pressure sales tactics often conducted during home solicitation sales. It requires sellers to provide a cancellation period, typically three business days, allowing consumers to reconsider and withdraw from the agreement without penalty. This is particularly relevant for solar energy agreements negotiated in home settings.
  

• The Fraudulent Practices Act is designed to address false advertising and deceptive business practices. Sellers are prohibited from making false claims about products or services, including solar energy systems, to make sure consumers receive accurate information about performance, costs, and benefits.  

Under Mississippi law, any warranties or service agreements provided with solar equipment must be clearly defined and honored. This protects consumers in the event of product defects or service issues. 

Mississippi laws also mandate full disclosure of all terms and conditions in contracts, including those for solar energy systems. This includes clear information about financing, maintenance costs, and the total price of the system to help consumers make informed decisions before purchasing.

Failure to comply with these requirements can result in penalties, including fines or contract nullification. Consumers are encouraged to review their agreements carefully and consult legal advice if needed to safeguard their rights. 

Take Action Against Unfair Solar Lenders Today 

Unfortunately, the increasing popularity of solar energy has created opportunities for unscrupulous lenders and contractors to take advantage of consumers. However, you do not have to accept unfair treatment or deceptive contracts. By leveraging federal and state consumer protection laws, you can fight back against predatory practices in the solar industry.  

Homeowners who feel trapped by predatory or unfair solar contracts can benefit from Attorney Macy D. Hanson's 10+ years of experience. With a thorough understanding of local statutes and court processes, he works hard to give his clients the best chance at achieving favorable outcomes, including the potential rescission of unlawful agreements. 

Based in Madison, Mississippi, The Law Office of Macy D. Hanson, PLLC serves local clients as well as individuals across the United States. Reach out today to schedule a consultation.