Question 1

Can I stop paying my solar loan if the system never worked?

Accepted Answer

Unilaterally stopping payment is risky — it triggers default, hits your credit, and gives the holder a head start on collection. The better move is a three-step sequence: (1) document the non-performance in writing (PTO date vs first-bill date, monitoring data, inspection failures), (2) preserve your right to assert the FTC Holder Rule (16 CFR § 433.2) defense against whoever currently holds the loan, and (3) get a written eligibility review BEFORE you change your payment behavior. TILA § 130 fee-shifting means the lender pays your attorney's fees when you prevail, so qualified disputes do not cost you out of pocket. The eligibility review is the right way to find out if your facts qualify.

Question 2

Can I sue the solar lender if the installer is bankrupt?

Accepted Answer

Yes, in many fact patterns. The installer's bankruptcy stops claims against that specific entity, but the lender that financed your loan is a separate, usually solvent, target. Under the FTC Holder Rule (16 CFR § 433.2), the lender inherits liability for the same misrepresentations the installer made — false savings projections, fabricated tax-credit math, undisclosed dealer fees, signatures captured without time to read. Recovery under the Holder Rule is typically capped at amounts already paid into the loan, but in solar that frequently runs into the tens of thousands. Many homeowners assume their case dies with the installer and walk away — that is exactly what the lender's collections team hopes for. The eligibility review identifies whether your loan documents trigger Holder Rule liability.

Question 3

What is the FTC Holder Rule and why does it matter for solar loans?

Accepted Answer

The FTC Holder Rule (16 CFR § 433.2) requires every consumer credit contract that finances goods or services to carry a clause subjecting the lender to all the same claims and defenses the borrower could raise against the seller. Translated to solar: if the installer lied to you, abandoned the install, or never energized the system, those claims travel to whoever currently holds your loan. The rule caps the recovery at amounts already paid into the loan, but in solar that frequently runs into the tens of thousands. The Holder Rule is the single most important lever a homeowner has when the original installer is bankrupt or unreachable — it lets you press the case against a solvent target instead of a corporate shell.

Question 4

How long do I have to file a claim against a solar lender?

Accepted Answer

Deadlines vary by claim type and state, and missing them is irreversible. As a rough primer: federal Truth in Lending Act (TILA) damages claims usually run 1 year from the violation; TILA rescission is up to 3 years; the FTC Holder Rule cap is amounts paid; state Unfair and Deceptive Acts and Practices (UDAP) statutes typically run 2 to 4 years (Texas DTPA = 2 from discovery, Florida FDUTPA = 4, California CLRA = 3, North Carolina UDTPA = 4, with treble damages mandatory). FTC Holder Rule defenses to a lender's collection action have no statute of limitations on the defense itself — meaning if the holder sues you, you can raise installer-fraud defenses regardless of age. Do not guess at your deadline. The eligibility review computes the live limitations window for your specific loan and state in two minutes.

EnerBank USA Complaints & Legal Options

Refund Eligibility & Hidden Dealer Fees

Eligibility Review

State-specific EnerBank USA complaint guides