Your Rights
The FTC Holder Rule: Why the Installer's Conduct Follows Your Solar Loan
· 5 min read
Part of the complete guide: Failed Solar in Florida: The Complete Homeowner's Guide →
Here's the question we hear most from Florida homeowners: “The lender already paid the contractor for a system that never worked — so I'm stuck, right?” Not necessarily. A paper trail showing a lender funded an installer for a system that never delivered is one of the most important records a homeowner can put in front of an attorney. The reason is a federal rule called the FTC Holder Rule.
What the Holder Rule actually says
Nearly every consumer installment contract — including solar loans from GoodLeap, Mosaic, Sunlight, Dividend, Sunnova and others — is required to contain the FTC's “Holder Rule” notice. In plain English, it means the lender that holds your loan takes it subject to all the claims and defenses you could raise against the seller (the installer).
Translation: “the installer never delivered a working system” isn't just a complaint against a bankrupt contractor — it can be raised against the loan itself.
Why “they already paid the installer” helps you
Solar lenders usually release money to the installer based on a completion certificate — often e-signed on a tablet at install. We regularly see money released before the system was ever operational (no permission to operate, no final inspection), or completion certificates signed by deception or forged outright. Lenders choose which dealers they fund — and the Holder Rule exists precisely so a lender can't collect on a consumer contract while disowning the seller's conduct. Whether it applies to a specific loan is a question for a Florida attorney.
The limits to know
- Your affirmative recovery under the Holder Rule is generally capped at the amount you've paid under the contract.
- It can also work as a defense to what you still owe.
- Layered with Florida's FDUTPA (deceptive practices) and the federal Truth in Lending Act (hidden dealer fees), the Holder Rule is one of several tools — not the only one.
How to use it
- Document the gap: no permission to operate, no final inspection, no production — and the funding/completion paperwork showing the loan paid out anyway.
- Dispute the loan in writing and file a complaint with the CFPB.
- Bring it to a Florida attorney who can assert the Holder Rule against the lender.
- Is your installer on the collapsed list? →
Check the tracker
We build the written record of the funding gap that makes a Holder Rule claim possible — then hand it to a vetted attorney.
Get a Free Project ReviewGeneral information, not legal advice. Don't stop paying on your own — talk to a licensed Florida attorney first.
Frequently asked questions
What is the FTC Holder Rule?
It's a federal rule requiring consumer credit contracts to include a notice making the lender (the holder of the loan) subject to the same claims and defenses the buyer could assert against the seller. For solar, it means your lender can be held responsible for the installer's fraud or failure to deliver.
Can I use the Holder Rule if my solar lender already paid the installer?
A lender funding the installer is exactly the situation the Holder Rule was written for. As a general matter, recovery under the rule is capped at what a consumer has paid, and it can also operate as a defense to a remaining balance. An attorney can tell you whether it applies to your loan — and assert it for you.
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