HARRISBURG, Pa. — Several attorney generals including Pennsylvania's Josh Shapiro sent a letter to companies asking for the suspension of loan payments for customers of Pink Energy.
Attorney General Josh Shapiro, with a coalition of other attorney generals, sent a letter to Dividend Solar Finance, GoodLeap, Cross Riverbank, Sunlight Financial and Solar Mosaic.
The letter asked the companies to suspend loan payments and the accrual of interest for customers who financed the purchase of a solar power system from Pink Energy and have not received working solar power systems.
The officials are also pushing the lenders to assist Pink Energy customers who are experiencing other functionality and installation issues.
“Pink Energy ripped off consumers and is hiding behind bankruptcy,” said Attorney General Shapiro. “Lenders who want the solar power sector to grow should help consumers obtain relief now, while Pink Energy’s bankruptcy process continues.
To protect Pennsylvania customers, Shapiro launched an investigation into Power Home Solar, which also does business as Pink Energy, after receiving complaints regarding the company's allegedly deceptive business practices.
On Sept. 21, before the investigation was complete, Pink Energy closed its doors. The company filed for bankruptcy on Oct. 7.
In the letter, Attorney General Shapiro explained that many of the complaints received by his office allege that Pink Energy made “false representations regarding the systems’ capabilities and anticipated electric bill reduction.”
Consumers made good-faith choices to heat and power their homes and should not be trapped in loans for a product that wasn’t delivered," said Shapiro in a statement.
The coalition of Attorneys General also noted that customers have alleged that Pink Energy misrepresented eligibility for state or federal tax credits that could be used to satisfy the loan agreements, leaving many customers in a precarious financial position.
The Attorneys General write, “These consumers relied on Pink’s representations regarding the tax credits in deciding that they could afford the terms of their loan, and the increased monthly payments are beyond what their budgets could handle – especially when the solar power system is not functioning properly or at all.”
Attorney General Josh Shapiro joined the letter led by Kentucky Attorney General Cameron along with attorneys general from Illinois, Indiana, Michigan, North Carolina, South Carolina, Tennessee, and Virginia.
