Oct 18, 2024

Five Solar Panel Companies Accused of Deceptive Practices in New Lawsuit

by Nadia El-Yaouti | Sep 26, 2024
Five Solar Panel Companies Accused of Deceptive Practices in New Lawsuit -Adobe Stock Images by mmphoto Photo Source: Adobe Stock Images by mmphoto

The rising popularity of residential solar panels has also cracked the door open for fraud. In that light, five solar panel companies have been accused of deceptive practices in a new lawsuit filed by the Legal Aid Society of New York City. The lawsuit says the companies engaged in deceptive practices that cost their customers hundreds of thousands of dollars.

The lawsuit was filed on behalf of Claver Campbell, a 75-year-old Black homeowner from Queens, New York, who lives on a fixed income. Cambell says she responded to a Facebook post that advertised affordable solar panel installations. The posting led her to communicate with a sales rep from the company Sunco—which sometimes operates as ATTYX. She signed up for a contract with the company but later decided to cancel the order. Campbell says that when she canceled the order, the rep called her, belittling her decision. She explains, “He said, 'Why did you do such a stupid thing? This would be so good for you.'" Campbell adds, "He pressured me into changing my mind."

When her contract was reinstated, she was shocked to receive a bill for over $106,000. The contract detailed that Campbell owed $500 a month for the solar panels despite the initial quote given as $184. According to the Legal Aid Society, Campbell's e-signature was on documents that she did not recognize. Despite Campbell's efforts to end the contract, ATTYX persisted in its efforts to enforce it. The company would go on to place a lien on her property.

Jennifer N. Levy, an attorney with the Legal Aid Society, shares, “Mrs. Campbell is just one victim of many across New York and the country of a solar panel industry that uses misleading advertisements and misrepresentations about lower electricity bills and instead unknowingly saddle people into unaffordable loans.”

The lawsuit names five companies, Solar Mosaic LLC, SUNco Capital LLC, ATTYX UTAH LLC, ATTYX LLC, and WebBank. These companies all work with one another to target vulnerable populations, including the elderly and those who are low-income earners or are on a fixed income.

Since 2018, there has been a sharp spike in fraud and deception streaming from solar panel companies. NPR highlighted this increase in an August report that described over a 1,000% increase in one-star ratings on the consumer site Solar Reviews from residential customers who have purchased solar panel contracts.

The lawsuit argues that the companies named in the lawsuit engaged in misleading advertisements and inaccurate quotes on the cost of solar panels. In response to a request for comment from CBS News, ATTYX stated, "We are aware of the lawsuit filed by a customer and firmly deny all allegations made against our company. At ATTYX, we take great pride in providing quality service and have always worked diligently to find solutions that meet our customers' needs. We have, and will continue to, work diligently to resolve any concerns and remain committed to reaching a resolution that satisfies all parties involved. Our customers' satisfaction and well-being will always be our top priority."

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Nadia El-Yaouti
Nadia El-Yaouti
Nadia El-Yaouti is a postgraduate from James Madison University, where she studied English and Education. Residing in Central Virginia with her husband and two young daughters, she balances her workaholic tendencies with a passion for travel, exploring the world with her family.