2 other Tesla solar customers say the projects hurt their credit rating with unauthorized loans

• Two other customers have come forward to say You’re here and Equifax reported loans they never applied for.
• The two customers have signed “electricity purchase contracts”, joint agreements for solar installations.
• But years later massive loans appeared on their credit reports, according to the legal proceedings, affecting their scores and affecting their ability to refinance their mortgages.

Two more Customers of Tesla’s home solar power system have filed a lawsuit claiming the company destroyed their credit by reporting loans they never applied for.

Yi Lee signed an agreement with Solar city in 2014 to put solar panels at his Rowland Heights, Calif., home, he said in a lawsuit filed in federal court Tuesday. He did not purchase the panels directly from Solar City, which was acquired by Tesla in 2016. Instead, he used a common “power purchase contract,” in which the company retains ownership of the system and sells the power to Lee at a pre-set rate.

“It’s not a loan,” he said in the complaint, adding that he “chose this type of arrangement to ensure that the solar system does not reflect its debt-to-income ratio, or would report on his credit report while he manages them carefully. “

But, a bit like a previous complaint lodged in October by another customer, Lee said he unexpectedly discovered that a 20-year loan totaling nearly $ 80,000 appeared on his credit report in September. The appearance of the loan hampered Lee’s ability to take advantage of record mortgage rates and refinance his home, according to the complaint.

Read more: Tesla has just settled his multi-year trial with a whistleblower who enraged Elon Musk. But accountants say that leaves questions about the destination of hundreds of millions of dollars.

Another client, Lito Hugo, is listed on the same complaint for a loan of $ 17,666 which he says was never cleared.

Both clients said they tried to work with Tesla and Equifax to resolve the situation, but letters of challenge from the credit agency to Tesla were ignored. They seek punitive damages, as well as those for their pain and suffering, attorney fees, repudiation of credit, etc.

Neither company responded to a request for comment from Business Insider. It is not clear whether the new plaintiffs, who are represented by the same law firm as the first lawsuit, will attempt to combine the lawsuits into a class action suit.

“Showing large debt on a consumer’s credit report is nothing more than a pressure tactic to force consumers to pay off debts they don’t owe, and defendants have done so on purpose. to force plaintiffs and other consumers to repay debts they don’t owe, ”says the complaint.

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