247 Closers’ Post

Watch out with solar loans. The CFPB's report today implies the rapid rise of nonbank lenders partnered with solar salespeople into the solar market is also raising the potential for illegal behavior and consumer harm. Four areas of significant risk: 1. Hidden markup fees ("dealer fees" often increase the loan cost by 30% or more above the cash price of the solar project) 2. Misleading claims about what consumers will pay (a tax credit is NOT guaranteed so deals pitching a 30% federal 'investment tax credit' for residential solar installations is misleading - in fact some lenders present loan principals as "net cost" assuming the tax credit will be received... that is not always the case) 3. Ballooning monthly payments (long terms may require prepayment by certain date equal to the expected tax credit... if that tax credit does not come through, consumer on hook for prepayment or substantially higher monthly payments) 4. Exaggerated savings claims (consumers often told solar panels will cover financing costs as well as eliminate future energy bills, but this is just not always the case and can vary by a lot in geographic locations and seasons) The whole area of claims affects all businesses. Consumers are harmed by claims that are not substantiated by facts, exaggerated, hidden, and in some cases, down right false. It takes time to understand the truth of what claims are being presented but it is worth it. This is often an area where businesses cross the line. And for businesses not wanting to cross the line - processes and procedures around monitoring and testing the truth of all claims being made is a somewhat burdensome - but necessary - practice. #claims #deceptive #junkfees #fees #solar #lending #energy #ManageTheFuture

Really good article highlighting what’s going on in residential solar right now. I see so many posts and articles about how sales reps lying to customers is the reason residential solar is in a sharp decline. The reality, in my opinion, is many of these fintech’s knowingly and willingly worked with the worst of the worst contractors to gas sales for a big fat exit. They allowed capital providers to take on underwater loans that were priced inaccurately and didn’t regulate or police the corrupt contractors in charge of installing and originating these loans on behalf of the capital providers. Now losses are through the roof, contractors are going out of business left and right at a historical rate, and Wall Street doesn’t want anything to do with this asset class that was once a shining star. Residential solar is in the middle of a full-blown cycle that is going to wipe out many in our industry, all because these fintechs raced to the bottom for an exit with no business ethics. Climate Power Co. is on a mission to cleanse our industry of the immoral and dishonest, while aligning ourselves with partners that do things the right way and will be around once the dust settles. Reach out and find out how we can help secure your solar business. The truth hurts – but it’s healthy for you!

Consumer Advisory: Beware of Costly Solar Loans As energy bills soar, homeowners are understandably looking for ways to save. Solar energy can be a great long-term solution, but it's important to be aware of potential pitfalls in financing. The Consumer Financial Protection Bureau (CFPB) is warning about misleading sales tactics and complex loan terms in the solar industry. Some companies are using high-pressure tactics and hidden fees to lure homeowners into costly loans. Here are some key things to watch out for: -Inflated Costs: Hidden fees and markups can significantly increase the total cost of the loan. -Misleading Loan Amounts: Some salespeople may subtract projected tax credits from the loan amount, making it seem smaller than it actually is. -Unexpected Payment Increases: Loan terms may include surprise payment hikes after a certain period. -Unrealistic Savings Estimates: Promised energy savings may not materialize. Before signing any solar energy contract, it's crucial to do your research and compare offers from multiple installers and lenders. Consider getting an independent energy audit to assess your needs and explore alternative options. If you're already struggling with a solar loan, know that you have options. You can submit a complaint to the CFPB or consult an attorney. Let's make informed decisions about solar energy and protect ourselves from predatory lending practices. You can read the article here: https://lnkd.in/gJE-spd7 #solarenergy #consumerprotection #financialawareness #CFPB

With Fintech clients, I’ve learned quite a bit about Solar Panel lending. While most consumers know about dealer markup in the auto lending space, most don’t realize it also occurs in solar lending. With door-to-door sales being the top method of solictation, it’s often the less financially affluent consumers (a potentially vulnerable customer segment) that are impacted. If your financial institution offers solar loans, it’s your responsibility to know exactly how the loan terms are being conveyed to borrowers. Remember… financial institutions are always responsible for third parties!

𝙏𝙝𝙚 𝙫𝙖𝙡𝙪𝙚𝙨-𝙗𝙖𝙨𝙚𝙙 𝙗𝙖𝙣𝙠 𝙞𝙨 𝙩𝙝𝙚 𝙛𝙞𝙧𝙨𝙩 𝙞𝙣 𝙩𝙝𝙚 𝙣𝙖𝙩𝙞𝙤𝙣 𝙩𝙤 𝙙𝙚𝙘𝙧𝙚𝙖𝙨𝙚 𝙨𝙤𝙡𝙖𝙧 𝙡𝙤𝙖𝙣 𝙧𝙖𝙩𝙚𝙨 𝙖𝙣𝙙 𝙚𝙭𝙩𝙚𝙣𝙙 𝙞𝙩𝙨 𝙩𝙚𝙧𝙢 Climate First Bank, the world’s first FDIC-insured community bank founded to combat the climate crisis, today announces its re-envisioned Residential Solar Loan product featuring a new 30-year term with an interest rate of 7.83% and a 7.99% APR*. It is the first time a financial institution has decreased its solar loan rates and extended the loan term. The move embodies the bank’s commitment to making sustainable finance accessible to everyone. Additionally, clients who enroll in auto-pay will receive a 0.25% discount for the new Residential Solar Loan product, equating to a 7.58% rate with a 7.73% APR**.

"One of the risky practices the agency discovered is hidden markup fees, according to the release. Some solar lenders mark up the principals of the loans to include hidden fees, don’t include those fees in the stated annual percentage rate (APR) and don’t clearly separate the fees from the total cash price that consumers would otherwise pay." Point-of-Sale financing for energy upgrades have long relied upon "dealer fees" to hide the true cost of financing for the end customer and in residential solar, it can represents more than 30% of the cost of the system. Because some of these POS financiers forbid their installers from disclosing these fees, they are forced into the practice because they don't yet have other viable options. At Atmos Financial, we enforce transparency and fair sales practices so that it's a winning situation for all involved. I welcome the regulators getting involved and protecting end customers — with basic rules in place, the market will bring the prices down. https://lnkd.in/gAFrWdfi

Regulatory agencies cracking down on deceptive loan practices in residential solar power sector The U.S. Department of the Treasury, Federal Trade Commission (FTC), and Consumer Financial Protection Bureau announced an interagency effort that aims to protect consumers from solar fraud and scams, while at the same time promoting safe green lending that can benefit consumers and responsible solar businesses. Loans for solar installations are generally facilitated by lenders in partnership with solar installers and door-to-door sales companies, the CFPB noted in a report. These loan agreements often include fees that increase loan costs by 30 percent or more over the cash price and misrepresent the impact of the federal tax credit for solar installations. “Predatory lending or other race-to-the-bottom business practices can undermine the growth and development of residential solar programs and our country’s international competitiveness,” said CFPB Director Rohit Chopra. “Honest businesses and lenders shouldn’t have to compete with predatory practices.” This story can be read in its entirety on the Wolters Kluwer Vital Law site at https://lnkd.in/gZZBDyH9. As reported by Suzanne Cosgrove. #GreenLending #FTC #CFBP #TreasuryDepartment #DeceptiveLoanPractices #SolarScams

CFPB issues an advisory that helps warn individuals of the various dangers regarding loans for solar energy installation. There are tax credits available for those who invest in energy efficient improvements, however we should never allow a tax credit or deduction be the determining factor in investing in a service. With this report, the CFPB warns citizens of hidden fees, loan terms and other aspects of loans for efficient energy that we may not typically consider. Please take a minute to read the report and help employ financially healthy decisionmaking when evaluating loans. https://lnkd.in/g-w7Y-yB

Elizabeth Killinger Scott Burns Bill Clayton Andrea Russell I am deeply dismayed by the treatment I have experienced from your organization. It has come to my attention that Reliant Energy has invoiced me for three months of energy consumption spanning the period from April 2021 to June 2021, despite my absence from the property during that time and without my explicit authorization for services. This issue came to light during my attempt to secure a home purchase, wherein a credit inquiry revealed a collection against me amounting to $876. The resulting delinquencies and missed payments have inflicted a substantial blow to my creditworthiness, causing a depreciation of over 120 points in my credit score. Despite my diligent provision of all requisite documentation to substantiate my absence from the state and disavowal of any authorization for account reinstatement, I am disheartened by the ongoing inability of your organization to address this matter satisfactorily. Notably, I vacated the premises on April 3rd, 2021, only to discover that Reliant Energy had, without my consent, reinstated services on April 8th, 2021. It bears repeating that I had ceased residency in the state subsequent to April 3rd, 2021. The repercussions of this oversight are significant. As a consequence of the resultant impact on my credit score, my monthly mortgage obligations have escalated by approximately $400, amounting to nearly $5,000 annually, representing a portion of my hard-earned post-tax income. I am hoping that one of your can humanize this for just a split-second. #reliantenergy #reliant #consumer #energy #houston #texas #brokensystem #customerexperience #credit #creditbureau

Climate First Bank Lowers Solar Loan Rates to Enhance Accessibility to Sustainable Living Solutions Climate First Bank, the world’s first FDIC-insured community bank established to combat the climate crisis, has introduced an enhanced version of its Residential Solar Loan product, featuring a groundbreaking 30-year term with an interest rate of 7.83% and a 7.99% APR*. This innovative move marks the first instance of a financial institution reducing its solar loan rates while extending the loan term, reaffirming the bank’s dedication to fostering accessible sustainable finance solutions. Furthermore, clients who opt for auto-pay enrollment will enjoy a 0.25% discount on the new Residential Solar Loan product, resulting in a reduced rate of 7.58% with a \[…\] Read the full story here: https://lnkd.in/dD-B3-w7 #solarenergy #alternativeenergy #solarpv #pvsolar #photovoltaic #cleanenergy #cleantech #climatechange #middleeast #africa #india #asiapacific #asia #america #climatefirstbank #northamerica #solarloans #sustainable