Dividend Finance is one of the leading companies providing loans to homeowners for residential rooftop solar energy panels. Newsome Melton recently filed a class action lawsuit against Dividend Finance alleging they have engaged in deceptive lending practices by including a hidden finance charge. The lawsuit alleges that hidden finance charges comprise up to 30% of the cost of the loan homeowner pay for their solar energy systems. According to the complaint, these hidden finance charges are never disclosed to the homeowners, who are led to believe that the full price of the loan is paid directly to the solar installer for panels on their roofs. As a result, many consumers are unaware that Dividend Finance profits significantly beyond the interest charged on the loan.
The lawsuit further alleges that the disclosures included in Dividend Finance’s loan agreements are misleading, as they do not disclose this baked-in finance charge. Furthermore, the complaint alleges that Dividend Finance specifically instructs its salespeople to avoid revealing the actual cash price of the solar systems to consumers. By withholding this information, consumers are kept in the dark about the true cost of financing, and the hidden charges are masked as part of the overall loan.
The class action lawsuit raises several claims against Dividend Finance, including:
- Violation of the Truth in Lending Act: This federal law is designed to promote informed use of consumer credit by requiring clear and accurate disclosure of terms and costs associated with lending. The complaint alleges that Dividend Finance’s practices violate this fundamental protection.
- Fraudulent Misrepresentation: The complaint alleges that Dividend Finance intentionally misrepresented the terms of the loans to consumers, leading them to believe that the only cost was the interest on the loan.
- Fraud: The complaint alleges Dividend Finance of engaging in fraudulent practices by concealing the true cost of the loans from consumers.
- Violation of Florida’s Unfair and Deceptive Trade Practices Act: This state law protects consumers from deceptive, unfair, or fraudulent business practices. Our lawsuit contends that Dividend Finance’s actions constitute a clear violation of this statute.
If you or a loved one have a loan with Dividend Finance for the purchase of a residential solar energy system and believe you may have been charged hidden and unfair finance fees, contact our offices for a free consultation. Our experienced legal team is here to help answer questions and explore your options.
For more information or to schedule your free consultation, please contact Newsome Melton at (407) 648-5977 or Inquiry@newsomelaw.com.