How to Dispute Solar Charges: Chargebacks, ACH, and Legal Rights

Disclaimer: This article is informational, not legal advice.

Overview

When a solar project goes wrong—whether the company abandons the installation, damages your roof, or the system never produces power—you may find yourself being billed for a service you didn't receive. Knowing how to legally and effectively dispute these charges can save you thousands of dollars and protect your credit. This guide outlines the procedures for stopping unauthorized payments, disputing charges with lenders, and leveraging federal consumer protection laws.

Key Points

You have the right to revoke authorization for automatic ACH withdrawals directly with your bank.
The FTC Holder Rule allows you to assert the same claims against your solar lender that you have against the fraudulent installer.
Document every billing error in writing; phone calls are not legally sufficient for protecting your dispute rights.
Filing a complaint with the CFPB is often necessary to force uncooperative lenders to respond.

Main Sections

Stopping Unauthorized ACH Withdrawals

Many solar loans and leases require you to set up automatic ACH payments from your checking account. If the company is charging you prematurely (e.g., before the system has been given Permission to Operate) or pulling unauthorized amounts, you can stop them. Contact your bank immediately and request a "Stop Payment Order" on all future ACH transfers to that specific company. You should also notify the solar company in writing that you have revoked their authorization to debit your account.

Credit Card Disputes and Chargebacks

If you paid a deposit or a monthly fee using a credit card, you have strong protections under the Fair Credit Billing Act (FCRA). If the solar company failed to deliver the promised goods or services, you can initiate a chargeback through your credit card issuer. You typically have 60 days from the date the charge appeared on your statement to file the dispute. Provide your credit card company with all documentation proving the contractor breached the agreement.

The FTC Holder Rule

If you financed your system through a point-of-sale lender (like GoodLeap or Mosaic), you might think you have to keep paying the loan even if the installer goes bankrupt or abandons the job. However, the FTC Holder in Due Course Rule (often called the Holder Rule) protects you. It states that any consumer credit contract must include a clause making the lender subject to all claims and defenses you have against the seller. If the installer defrauded you, you can legally assert that scams as a defense against paying the lender.

Sending a Billing Error Letter

To preserve your legal rights when disputing a loan charge, you must send a formal Billing Error Notice to the lender. This cannot just be a phone call. Send a physical letter via certified mail with a return receipt requested. State your name, account number, the specific amount in dispute, and a detailed explanation of why the charge is invalid (e.g., "The solar system was never installed, therefore the loan should not be in repayment"). Include copies of any supporting documents.

The Escalation Timeline

Immediately Revoke ACH authorization with your bank and send a formal dispute letter to the lender.
Within 30 Days The lender is required by law to acknowledge your written dispute.
Within 90 Days The lender must investigate and either correct the error or provide a written explanation of why they believe the debt is valid.
Escalation If the lender refuses to correct the issue, file complaints with the CFPB, FTC, and your state Attorney General.

Consumer Protection Insight

Got Screwed on Solar? Don’t Let the Next Person Who Makes Money From Your Problem Be Your Lawyer.

The solar salesperson was paid. The installer was paid. The finance company drafts money from your account every month. And when you look for a solar lawyer, the conversation often turns to retainers, hourly rates, and money upfront.

Before paying a lawyer out of pocket, there is a critical question worth asking:

“Could any applicable law, based on your facts and jurisdiction, allow attorney fees to be sought from the other side?”

Asking you to pay is simple. Evaluating potential statutory fee-shifting under state UDAP laws, TILA, and deceptive trade practices requires investigating your actual contract and disclosures.

Build My Solar Case → Confidential · 100% Free Case Dossier Organization · No Upfront Retainer Required

What To Do Next

Gather all your documentation: the original contract, emails, timeline of events, and proof that the system is not functioning or was never installed. Draft your dispute letters and send them via certified mail to ensure you have a paper trail. If a lender threatens to report your non-payment to credit bureaus while the dispute is pending, remind them of your rights under the Fair Credit Billing Act and file a CFPB complaint immediately.

FAQ

Can my bank stop a solar company from taking money from my account?

Yes. You have the right to revoke ACH authorization at any time. You must notify your bank and request a stop payment, and it is best practice to also notify the solar company in writing that authorization has been revoked.

What happens if I just stop paying my solar loan?

If you simply stop paying without following the proper legal dispute process, the lender will report the late payments to the credit bureaus, which will severely damage your credit score. They may also send the debt to collections. You must formally dispute the debt to protect your rights.

Does the FTC Holder Rule apply to all solar loans?

The FTC Holder Rule (16 C.F.R. § 433) applies to consumer credit contracts where the seller arranged the financing or referred you to the specific lender. If a solar salesperson set you up with a loan on an iPad in your living room, the Holder Rule applies. It does not apply if you went to your own bank independently to get a home improvement loan.

Evidence-First Intake

Their Shortcut Is Your Wallet. Our Starting Point Is Your Evidence.

Why call Firm #1… then Firm #2… then Firm #3 repeating your story, uploading files over and over, and waiting to see who is interested?

The Old Way

“Please take my case. How much is your retainer?”

Homeowners get screened for how much money they can fund upfront before anyone reviews the disclosures.

The Informed Starting Point

“Here are the facts and documents I have. Is this something you can evaluate?”

Build your timeline and file once. Let participating firms review the documentation and decide whether to reach out.

Build My Solar Case File → Upload documents once · Direct review by participating consumer-protection firms

Related Resources

Review our comprehensive field guide to solar panel scams and rip-offs.
Review our guide on common solar billing errors.
Review our guide on lender defenses and loan cancellation.

Sources

Federal Trade Commission (FTC) - The Holder Rule
Consumer Financial Protection Bureau (CFPB) - How to stop automatic payments
Fair Credit Billing Act (FCBA)

Standardized Case Preparation

Understand the Possibilities Before You Pay to Proceed.

The solar company has lawyers. The finance company has lawyers. You should have an opportunity to understand your own situation too—before assuming you must fund all legal costs yourself.

Question Fee-Shifting

Asking for a retainer is simple. But state UDAP laws, TILA § 130, and consumer statutes often allow attorney fees to be sought from the fraudulent company.

Build Your Evidence

Not how much is in your bank account, but what did they promise? What did you sign? Did your electric bill drop as promised? Where are the texts and proposals?

Build It Once

Stop repeating your trauma to Firm #1, #2, and #3. Tell your story once, upload documents once, and let participating law firms evaluate whether to reach out.

Read the complete fee-shifting & legal cost explainer ▼

The solar salesperson may have been paid. The installer may have been paid. The finance company may be taking money from you every month. And now you have reason to believe something is seriously wrong.

So you Google: “Solar fraud lawyer.” And what happens next? You tell someone your story. They ask a few questions. And eventually, the conversation turns to: How are you going to pay for legal services? Retainer. Hourly rate. Money upfront.

Those arrangements may be appropriate in some matters. But before assuming that paying a lawyer is your only option, ask: “Could any applicable law, based on the facts and jurisdiction, allow attorney fees to be sought from the other side?”

The answer depends on the law, the contract, the claims available, the evidence, and the outcome. Asking you to pay is simple. Evaluating potential fee-shifting requires investigating your contract, financing terms, utility bills, texts, cancellation attempts, and consumer-protection statutes.

Their shortcut is your wallet. Our starting point is your evidence. Tell your story once. Upload your documents once. Build the timeline once. SolarPanelScams.com helps organize the information and prepare the matter for potential attorney review.

Let THEM decide whether to reach out. Then you decide whom, if anyone, you want to speak with.

BUILD MY SOLAR CASE →

You may already have paid the solar company, installer, or finance provider. Before committing additional money, make sure you understand what options may be available to you.

Disclaimer: SolarPanelScams.com is not a law firm and does not provide legal advice. It does not determine whether a claim exists, whether attorney fees may be recoverable, whether a matter qualifies for representation or whether any result is likely. Potential attorney-fee recovery and representation depend on applicable law, facts, claims, evidence, procedure and outcome. Participating law firms may decline to review or accept a matter. No result is guaranteed.