The lever most homeowners never hear about
The FTC Holder Rule.
Your solar loan was almost certainly sold to a finance company. A federal rule means that company can be held answerable for what the installer did. Here's how it works — in plain English.
What the Holder Rule is
The FTC Holder Rule(formally “Preservation of Consumers' Claims and Defenses,” 16 CFR Part 433) requires a specific notice to appear in most consumer credit contracts. That notice ties the loan to the sale behind it.
In practice, it means the holder of your loan — the bank or finance company that bought it from the solar dealer — takes the loan subject to the same claims and defenses you have against the seller. The required notice reads:
“ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.”
— 16 CFR § 433.2
Why it matters so much for solar
Solar is almost always financed, and the loan is typically sold to a third-party lender within days of signing. So homeowners are often told: “Your problem is with the installer — but you still owe the finance company.”
The Holder Rule flips that. Because the notice is in the contract, the finance company steps into the seller's shoes. If the installer misrepresented your savings, never energized the system, or abandoned the job, those claims and defenses can be raised against the lender holding your loan — the party that is usually easier to reach, and that has a real incentive to resolve.
The important limit
The FTC has confirmed that a consumer's affirmative recovery under the Holder Rule is capped at the total amount you have paid under the contract. It is a powerful tool to reduce, defend against, or unwind financing — but it is not unlimited, and every contract and state is different. This page is general information, not legal advice.
How the Task Force uses it for you
- We confirm the notice is in your contract. It is required to be — and its presence is what preserves your claims.
- We identify who holds your loan now. Loans are bought and sold; we trace the current holder.
- We document the installer's conduct. The misrepresentation or breach is the claim the Holder Rule lets us carry to the lender.
- We assert your claims and defenses against the holder. That is how we press to stop payments, reduce the balance, or unwind the deal.
Not sure if your loan was sold, or who holds it now?
That's one of the first things we check. Your initial review is free.