March 12 (Renewables Now) - Vivint Solar (NYSE:VSLR) said Friday the press release by the New Mexico attorney general's office, which says the US residential solar company is "jeopardizing home ownership" for customers, is misleading and misrepresents dealings with consumers in the state.
“To be clear, Vivint Solar does not, has not, will not and cannot ever jeopardize its customers' home ownership. Vivint Solar does not take a lien on its customers’ homes under its Power Purchase Agreements (PPAs) or Solar System Lease Agreements,” the company said. It explained that it discloses in the county property records the fact that it owns the solar system.
Attorney General Hector Balderas on Thursday said he has filed a lawsuit against the solar company that claims “Vivint was engaging in unfair and unconscionable business practices including clouding titles to consumers’ homes, fraud and racketeering in connection with its residential solar power purchase agreements and solar equipment.”
The company is being accused of using high pressure sales techniques and procedures to mislead consumers into believing that the 20-year PPAs with Vivint Solar would save them "substantial amounts of money". The lawsuit also says Vivint ’s sales model allows sales managers to “conceal or omit” the fact that Vivint will file a UCC Statement or a fixture filing in the customer’s home’s real property records, identifying the consumer as a debtor, “thereby clouding the consumer’s real property title”.
.@VivintSolar I will fight to protect the rights of all New Mexico consumers and hold giant, out-of-state corporations accountable who abuse, mislead and employ dishonest practices to defraud our hard working families. https://t.co/omTJBtmVLz— NM Attorney General (@NewMexicoOAG) March 8, 2018
Vivint Solar said that the press release does not accurately describe the attorney general's own allegations in the disputed lawsuit, which was filed last week in the Second Judicial District Court in Bernalillo County.