Did Your Solar Panel Company Pink Energy (Power Home Solar) File For Bankruptcy?
The bankruptcy filing by Pink Energy, previously Power Home Solar, has left many consumers paying thousands of dollars for solar panel systems that do not work.
Bankruptcy allows consumers to submit claims against the solar panel company, but recovery can take years and is likely to be small. Fortunately, consumers who purchased solar panel systems from Pink Energy do have other legal options, particularly against the entities financing your loan.
A Bit About Loan Financing Terms For Solar Energy Systems And Your Rights
Most loans that finance the purchase of solar energy systems are required to include a provision called the FTC Holder Rule.
Under the FTC Holder Rule, the finance company is responsible for any claims you as the purchaser have against the seller (Pink Energy).
This means that if you have a legal claim against Pink Energy (Power Home Solar) or another solar company in bankruptcy, you can bring that claim against the lender that financed the sale of your solar panel system. So, while Pink Energy is in bankruptcy, your lender likely is not.
There are some limitations on claims, however, against your lender. Under the federal Holder Rule, the lender’s liability for your claims against the solar company is limited to the amount of money that you, the purchaser, have paid on the loan. Some states have separate Holder Rules that allow consumers to recover more from the lender than just what has been paid on the loan.
You may have additional options:
Canceling The Loan
It may be possible to cancel the loan under the Holder Rule for fraud or misrepresentations in the sale of the solar power system.
Recourse For Improper Action By The Lender
The limitation to the amount paid on the loan does not apply to improper acts by the lender.
This means that if the lender committed misrepresentations or fraud, such as accepting the loans when it knew the systems were worthless or the contracts were forged, you as the purchaser could recover more than just the amount that was paid on the loan.
Contact Roseman Law Firm Today
If you purchased a solar power system from Pink Energy, Power Solar Home or another solar power company in bankruptcy and your system is not performing as promised or you believe you were defrauded, contact Roseman Law Firm, PLLC, today to find out if you have rights against the lender financing your solar panel system.