MEMPHIS, Tenn. (WMC) – Tennessee Attorney General Jonathan Skrmetti joined a coalition of eight state attorneys general urging five solar loan companies to suspend loan payments for those Pink Energy customer.
Pink Energy, which expanded into Memphis just months ago, filed for bankruptcy in October.
The coalition sent a letter urging Dividend Solar Finance, GoodLeap, Riverbank, Sunlight Financial, and Solar Mosaic to suspend loan payments and accrued interest for customers financing the purchase of a solar system. from Pink Energy which has yet to receive a working solar power system. .
The coalition is led by Kentucky AG Daniel Cameron.
The attorneys general are also asking lenders to help Pink Energy customers who are experiencing other operating and installation issues.
“This office is committed to protecting Tennessee consumers from unlawful and illegitimate business practices,” said General Skrmetti. “Companies that deceive customers through false representations should and will be held accountable. I am proud of the hard work of our Consumer Protection team in investigating this matter.”
Skrmetti signed this letter after several complaints were submitted by consumers before Pink Energy abruptly shut down operations and filed for bankruptcy on October 7.
A number of consumer complaints have also been filed since the bankruptcy filing, particularly from consumers concerned about continuing to pay for a solar system that didn’t perform as promised.
In their letter, the attorneys general explained that several complaints received by their offices allege that Pink Energy made “false representations about the capabilities of the systems and expected reductions in the electricity bill .”
As a result, consumers “who were led to believe that they made an environmentally friendly and financially prudent decision by purchasing a solar power system from Pink, are now stuck paying a loan for a bad one.” solar power system on top of their monthly electricity bill.”
The coalition also said consumers have accused Pink Energy of misrepresenting consumers’ potential qualifications for tax credits.
Many of the lenders’ financing arrangements assume that even unqualified consumers can use their 26% credit toward a lump sum payment.
Former employees speak out about Pink Energy after closing
However, as the attorneys general outlined in the letter, “For many consumers, not receiving the promised tax credits leaves them unable to make the necessary lump sum payments needed to maintain the your company, or a fellow lender, from significantly increasing their monthly loan payments.
“These consumers relied on Pink Energy’s representations about tax credits to decide they could afford the terms of their loan, and the increase in monthly payments was more than what their budgets could handle – more that is when the solar power system is not working properly (or at all).”
Attorney General Skrmetti joined attorneys general from Kentucky, Illinois, Indiana, Michigan, North Carolina, Pennsylvania, South Carolina, and Virginia in sending the letter.
To view the entire letter, click here.
Click here to sign up for our newsletter!
Click here to report a spelling or grammar error. Please include the title.
Copyright 2022 WMC. All rights reserved.
