Should You Join a GoodLeap Class Action Lawsuit?

At Prevost Law Firm, we’ve recently received a number of questions about a potential class action lawsuit against GoodLeap (formerly known as LoanPal). Many clients are wondering if joining such a lawsuit is a smart move, or if there’s a better path forward.

Here are our thoughts based on current legal realities and our direct experience representing consumers with solar loan disputes.

The Arbitration Clause Hurdle

One of the biggest obstacles to any class action lawsuit against GoodLeap is the arbitration clause built into every single GoodLeap or LoanPal loan agreement. These clauses state that customers agree not to file or join a class action, and instead must resolve disputes through individual arbitration.

At Prevost, we thoroughly evaluated this issue early on. In our opinion, it is unlikely that a court would agree to set aside GoodLeap’s arbitration clause entirely. Overcoming that clause would take years of litigation, and if a class action attorney lost, GoodLeap would almost certainly appeal the decision all the way to the U.S. Supreme Court.

That kind of legal battle is not only time-consuming, but it’s also uncertain…and risky.

Understanding Why GoodLeap Lawsuits Are Different

Many consumers assume that if enough people have complaints against a company, a class action lawsuit is automatically the best solution. However, solar financing disputes often involve unique legal issues that make these cases different from traditional consumer class actions.

Many GoodLeap loans were used to finance solar panels, roofing projects, HVAC systems, batteries, and other home improvement loan products sold by independent solar companies and contractors. Because every transaction is slightly different, courts frequently must examine the specific sales proposals, representations, financing documents, and installation circumstances associated with each borrower.

For example, one homeowner may claim that a solar company made false statements about energy savings, while another may allege deceptive conduct regarding tax credit eligibility or monthly payments. Another consumer may have concerns about workmanship, solar installation delays, or issues with a solar power system that never performed as promised.

These differences can make it difficult for class members to pursue identical legal claims in a single lawsuit. Instead, many disputes involving solar lenders and finance companies are resolved individually through arbitration or other legal proceedings.

Consumers should also understand that GoodLeap LLC is generally a financing company rather than the solar installer itself. In many disputes, allegations involve both the lender and the solar panel company that sold or installed the solar system.

The Role of the FTC Holder Rule

One reason many consumers pursue claims against solar lenders is the FTC Holder Rule.

The FTC Holder Rule is a federal regulation designed to protect consumers who finance purchases through third-party lenders. In certain circumstances, this rule may allow consumers to assert claims against a finance company that purchased or funded a consumer credit contract.

Many solar panel systems are financed through lenders such as GoodLeap, Sunlight Financial, Solar Mosaic LLC, and other financial institutions. When problems arise involving deceptive trade practices, fraudulent contractors, or false representations made during the sales process, consumers often explore whether the FTC Holder Rule may apply.

However, the existence of the FTC Holder Rule does not automatically eliminate arbitration requirements or guarantee a class action settlement. Courts continue to evaluate these issues on a case-by-case basis based on the specific language of the financing agreement and applicable federal law.

For that reason, homeowners should carefully review their GoodLeap contract and consult qualified legal counsel regarding their individual rights and options.

Class Actions Usually Benefit Lawyers, Not Consumers

Even if a class action against GoodLeap were to move forward, it’s important to be realistic about what that outcome might look like.

In our experience, class actions often result in big payouts for the attorneys, while individual consumers receive very little. We’ve seen cases where consumers walk away with a $10 gift card while attorneys walk away with millions. Meanwhile, the companies being sued walk away having paid very little per customer, essentially buying their way out of accountability.

We believe this is not justice. And it’s not what most of our clients are looking for.

In many class action cases, the named defendant agrees to a settlement fund that is distributed among thousands—or sometimes hundreds of thousands—of consumers. After attorney’s fees, administrative costs, and other expenses are paid, the remaining recovery for individual class members can be relatively small.

This is particularly true in disputes involving solar sales and solar financing because damages often vary significantly from one homeowner to another. One customer may be dealing with a non-functioning solar system and substantial electric bill increases, while another may be primarily concerned about interest rate issues, dealer fees, or unexpected accrual of interest.

As a result, a class action settlement may not fully address the specific financial harm experienced by an individual homeowner. Consumers who are seeking cancellation of GoodLeap loans, reimbursement of finance charges, or other substantial relief often find that individual claims provide a more direct path toward those goals.

Common Complaints Raised by Solar Loan Borrowers

Over the last several years, consumers across the solar industry have reported a variety of concerns involving both solar installers and financing providers.

Common allegations include:

• False representations regarding energy savings
• Misleading statements about tax credit eligibility
• Solar panel systems that do not perform as promised
• Unexpected increases in monthly payments
• Delays in solar installation
• Incomplete projects
• Unauthorized contract changes
• Questions regarding UCC liens
• Concerns about credit score impacts
• Alleged fraudulent loans or financing documents

Consumers have also filed complaints with organizations such as the Better Business Bureau, state attorneys general, and the Federal Trade Commission.

While complaints alone do not establish liability, they often provide insight into recurring issues that may affect homeowners considering legal action.

Companies frequently mentioned in consumer complaints across the industry have included various solar companies, lenders, and installers, including Titan Solar, Power Home Solar (Pink Energy), Sunlight Financial, GoodLeap, and others.

Why We Recommend Individual Arbitration

If your goal is to have your solar loan wiped out and your legal fees covered, we strongly believe your best bet is to file an individual arbitration claim.

While individual arbitration does take time (typically 9 to 12 months) it is much faster and more predictable than waiting years to see if a class action goes anywhere. And unlike a class action, an individual arbitration gives you the opportunity to seek a full resolution of your case, not just a token settlement.

Individual arbitration allows homeowners to focus on the specific facts of their case rather than being grouped together with thousands of other consumers whose circumstances may be very different.

For example, one homeowner may have been promised that a solar power system would eliminate most of their electric bill, while another may have been told that their loan would not accrue interest before installation was complete. These facts matter, and they can significantly impact the value and strength of a claim.

In arbitration, the decision maker can evaluate the specific conduct of the solar company, lender, sales representative, and contractors involved in a particular transaction. This individualized review often provides consumers with a greater opportunity to pursue meaningful relief than they would receive through a broad class action settlement.

Although every case is different and no outcome can be guaranteed, many consumers prefer a process that focuses on their unique circumstances rather than the average circumstances of a large group of class members.

Frequently Asked Questions About GoodLeap Class Actions

Can I join a GoodLeap class action lawsuit?

At the time of writing, consumers should carefully evaluate whether any proposed class action is likely to overcome the arbitration provisions contained in many GoodLeap contracts. Legal developments can change over time, so it is important to stay informed about current litigation.

Does the FTC Holder Rule allow me to sue GoodLeap?

The FTC Holder Rule may provide certain rights against a finance company under specific circumstances. However, its application depends on the facts of the case and the language of the financing agreement.

Can I challenge a solar loan if the installer made false promises?

Potentially. Consumers sometimes pursue legal claims based on alleged false statements, deceptive conduct, or other issues related to the sales process. The viability of those claims depends on the evidence and applicable law.

Will a class action remove my GoodLeap loan?

Not necessarily. Even if a class action settlement occurs, it may not result in cancellation of individual loans. Settlement terms vary significantly from case to case.

What if my solar company is out of business?

Some homeowners financed projects through solar companies that later ceased operations, including customers of Pink Energy and other solar installers. The legal options available depend on the facts of the transaction and the parties involved.

Bottom Line

A GoodLeap class action lawsuit may sound appealing, but consumers should understand the significant legal hurdles involved. Arbitration clauses, individualized factual issues, and the structure of many solar financing agreements can make class-wide litigation difficult to maintain.

For homeowners dealing with disputes involving solar panels, solar panel systems, GoodLeap loans, dealer fees, misleading sales proposals, deceptive trade practices, or other concerns related to a solar installation, it is important to evaluate all available legal options. Depending on the circumstances, individual arbitration may offer a more direct path toward meaningful relief than waiting years for a potential class action settlement.

Every situation is different, and outcomes depend on the specific facts of the case. Consumers should conduct appropriate due diligence and seek legal advice regarding their rights under applicable consumer protection laws and federal law before making any decisions regarding litigation or arbitration.

If you’re serious about holding GoodLeap accountable and getting your solar loan canceled, we encourage you to explore an individual claim instead. It’s faster, it’s more certain, and it’s much more likely to actually result in meaningful relief for you.

Have questions about a GoodLeap class action lawsuit or or other solar loans and issues?

Contact Prevost Law Firm today to get your no-cost claim review.