GoodLeap Solar Loan Lawsuit: What Borrowers Should Know
If you financed rooftop solar through GoodLeap — or through Loanpal, the name the company used before rebranding — and your loan balance came in far higher than the system you were quoted, you are not alone, and you may have grounds for a claim. GoodLeap is the largest residential solar lender in the United States, and it has also become one of the most-sued, facing a state attorney general lawsuit, consumer class actions, and individual arbitrations centered on allegedly hidden “dealer fees.” This page explains, in plain language, what GoodLeap is accused of, what the allegations mean for you, and what your options are. Everything here reflects public allegations that are being litigated — GoodLeap denies wrongdoing and says its disclosures follow the law — and nothing on this page states that any court has found the company liable. Credible Law is a national legal resource and attorney referral network, not a law firm, and connects homeowners with attorneys who handle solar contract disputes.
Who Is GoodLeap?
GoodLeap, LLC is a financial-technology and lending company that finances residential solar and home-improvement projects at the point of sale. Before rebranding, it operated as Loanpal — a detail that matters, because some earlier complaints were filed under the Loanpal name and have since been folded into the broader GoodLeap litigation. Industry estimates put GoodLeap’s origination volume north of $20 billion in solar loans, making it the dominant lender in the residential solar market. It does not typically sell or install panels itself; instead, it partners with solar installers who offer GoodLeap financing to homeowners at the kitchen table. That structure — lender behind the installer — sits at the center of the allegations.
What GoodLeap Is Accused Of
The lawsuits and regulatory actions against GoodLeap cluster around a handful of related allegations. Again, these are contested claims, not findings of liability.
Hidden Dealer Fees
The core allegation is the “dealer fee.” When a homeowner finances rather than pays cash, GoodLeap is alleged to charge the installer a substantial upfront fee — commonly cited in the 10% to 30% range, with some documented cases higher — which the installer then folds into the total system price the homeowner finances. Plaintiffs and regulators argue this is effectively a hidden finance charge: it makes the loan look like a low-rate deal while the true cost of credit is far higher. This is the same mechanism explained in depth on our solar loan dealer fee page.
Fees Allegedly Concealed — and Installers Barred From Explaining Them
The most striking allegation from the Minnesota Attorney General’s complaint is that GoodLeap contractually prohibited solar installers from identifying or explaining the dealer fee to consumers, or from telling them that paying cash would be cheaper. If accurate, that means borrowers were paying interest for decades on a fee they were, according to the complaint, actively prevented from learning existed. The complaint summarizes it this way: the companies allegedly deceive consumers by charging a hidden, costly upfront fee added into the stated price while telling consumers the inflated price reflects only the system’s cost, not financing.
Understated APR and Disclosure Failures
Because the dealer fee inflates the financed principal, plaintiffs allege the advertised low APR did not reflect the true cost of borrowing — a Truth in Lending Act (TILA) problem. Many borrowers say they were shown a monthly payment without being clearly told the total repayment amount, the loan term, or how the dealer fee inflated the system’s cost.
Forged Signatures and Bankrupt-Installer Liability
Some complaints go further, alleging forged or altered signatures on loan documents, and raising GoodLeap’s potential liability for the conduct of installer partners that later went bankrupt. Under the FTC Holder Rule, a lender can be held responsible for the seller’s misconduct — an important theory when the installer has vanished but the GoodLeap loan remains.
The Minnesota Lawsuit: The Numbers
The most detailed public case is Minnesota’s. In March 2024, Attorney General Keith Ellison sued GoodLeap, Sunlight Financial, Solar Mosaic, and Dividend Solar Finance, alleging they concealed roughly $35 million in dealer fees from Minnesota consumers on more than 5,000 solar loans since 2017 — part of over $200 million in residential solar projects. The figures cited for GoodLeap specifically are concrete: an average dealer fee of about 19.32% of each loan, or roughly $7,552 added to the typical borrower’s balance. The complaint alleges violations of Minnesota’s Deceptive Trade Practices Act, TILA, and usury statutes, and the state is seeking an injunction, proper finance-charge disclosures, refunds, and civil penalties.
The federal Consumer Financial Protection Bureau added weight in an August 2024 issue-spotlight report on solar lending that flagged these hidden markups as a systemic concern across the industry. And in 2026, the New York Attorney General’s action against solar sellers and their lenders echoed similar themes of inflated loan amounts and deceptive financing. Together, these actions have made GoodLeap’s dealer-fee model one of the most scrutinized practices in consumer solar finance.
How the Dealer Fee Works in Practice: A Real Example
The mechanics are easier to see with numbers. One Minnesota homeowner featured in reporting on the case said dealer fees inflated the price of his rooftop solar by roughly $13,000, and that his contract did not appear to clearly explain that the loan principal included the fee — the 24-page document reportedly contained only two sentences noting the price may include it. He said he did not think to shop around, which is precisely the behavior the low advertised rate is alleged to encourage.
Play it out on a typical system. Suppose an installer quotes $28,000 and offers a 1.99% GoodLeap loan. With a dealer fee near the 19% average cited in Minnesota, the financed principal is closer to $33,300 — about $5,300 the homeowner never saw itemized, now carrying interest for 25 years. The monthly payment lands where the salesperson promised, so nothing looks wrong. But the homeowner is paying that low rate on a balance inflated by a fee they were, according to the allegations, never told about and could have avoided by paying cash. That gap between the quoted system price and the financed total is the single most useful thing to check on your own paperwork.
GoodLeap’s Response
GoodLeap disputes the allegations. In response to the Minnesota lawsuit, the company and the other named lenders have rejected the claims and maintain that their disclosures follow the law. As of this writing the case has not gone to trial, and no court has found GoodLeap liable. That matters for how you should read this page: the existence of a lawsuit is not a finding of wrongdoing, and any assessment of your particular loan depends on your specific documents and disclosures, not on the allegations in another consumer’s case. It is exactly the kind of question a document review is meant to answer.
Do You Have a GoodLeap Claim? Signs to Look For
You may have grounds to challenge your GoodLeap loan if several of these describe your situation:
- Your financed balance was 10–30% higher than the cash price your installer quoted, with no clear line-item fee.
- You were offered a very low APR (often under 4%) paired with a balance well above the system’s quoted price.
- You were never told you could pay cash to avoid a financing fee.
- You signed on a tablet and never received clear, itemized copies of the loan documents.
- You were shown only a monthly payment without the total repayment amount or term clearly explained.
- Your loan originated between 2018 and 2025 under GoodLeap or Loanpal.
- Your installer has since gone out of business or filed bankruptcy, but your GoodLeap loan continues.
None of these alone proves a violation, but together they mirror the fact pattern regulators and plaintiffs are litigating. A document review is the way to know whether your specific loan is challengeable.
What Are Your Options?
If you believe your GoodLeap loan carries a hidden dealer fee or defective disclosures, several paths exist:
Individual Arbitration
Most GoodLeap loan agreements contain a mandatory arbitration clause. That is not the barrier it may seem: for a five-figure hidden fee, an individual arbitration can recover more than a class settlement, and law firms are actively bringing these claims. Mass arbitration — many borrowers filing at once — has also created leverage.
Joining or Monitoring Class Actions
Individual complaints against GoodLeap, some originally filed under the Loanpal name, have been consolidated into broader litigation. A class action may cover you automatically if you fit the class definition, though class recoveries often pay a fraction of actual losses.
TILA Rescission and State-Law Claims
Where the loan is secured by your home and disclosures failed, TILA rescission can reach up to three years. State consumer-protection statutes — especially strong in states like California with fee-shifting provisions — may allow recovery of the fee plus damages and attorney’s fees. These overlap with the options on our how to cancel a solar contract page.
Regulatory Complaints
Filing with your state attorney general, the CFPB, and — in California — the Department of Financial Protection and Innovation is free, builds the record, and can strengthen a private claim. If a UCC-1 lien from your financing is clouding your title, addressing solar UCC lien removal may also be part of the resolution.
What to Do Right Now
1. Pull your loan documents and compare the financed principal to the cash price you were quoted.
2. Note your APR and term and whether the total repayment was ever clearly explained.
3. Confirm whether it’s a GoodLeap or Loanpal loan — both fall under the same litigation.
4. File complaints with your state AG and the CFPB — free and record-building.
5. Have the loan reviewed by a solar fraud attorney before stopping payments or signing anything GoodLeap offers.
Frequently Asked Questions
Is GoodLeap being sued?
Yes. GoodLeap faces a Minnesota Attorney General lawsuit (alongside three other lenders), consumer class actions, and individual arbitrations, largely centered on allegedly hidden dealer fees and disclosure failures. GoodLeap denies wrongdoing and says its disclosures comply with the law; the cases are being litigated.
What is the GoodLeap dealer fee?
It is an upfront fee GoodLeap is alleged to charge installers — commonly cited at 10% to 30% of the system cost — that the installer folds into the financed price. Regulators argue it is effectively a hidden finance charge that makes a low-APR loan cost far more than it appears. In Minnesota’s case, GoodLeap’s average fee was cited at about 19.32%, or roughly $7,552 per borrower.
I have a Loanpal loan — does this apply to me?
Likely yes. Loanpal is GoodLeap’s former name, and some complaints originally filed under Loanpal have been consolidated into the broader GoodLeap litigation. A loan originated under either name may be affected.
Can I get out of my GoodLeap solar loan?
Possibly, depending on your disclosures and state. Options include individual arbitration, TILA rescission on a home-secured loan (up to three years where disclosures failed), state consumer-protection claims, and negotiated payoffs. A document review is the way to identify which applies.
What if my solar installer went bankrupt but GoodLeap holds the loan?
Your loan does not disappear, but you may still have recourse. The FTC Holder Rule can make the lender accountable for the installer’s misconduct, so a GoodLeap loan tied to a bankrupt installer may still be challengeable.
Should I stop paying my GoodLeap loan?
No, not without legal advice. Stopping payment can trigger default and harm your credit before any claim is resolved. Speak with a qualified attorney about the right sequence first.
What does it cost to have my GoodLeap loan reviewed?
Through Credible Law there is no cost to be matched with an attorney, and many attorneys handling these cases work on contingency or a no-upfront-fee basis, especially in states with fee-shifting consumer statutes.
Talk to an Attorney About Your GoodLeap Loan
If your GoodLeap or Loanpal solar loan balance is thousands more than the system you were quoted, you may have been charged a hidden dealer fee — and you may have a claim. Credible Law connects homeowners nationwide with independent, licensed attorneys who handle solar dealer-fee disputes, contract cancellation, and TILA claims. An attorney can review your loan documents and tell you whether the fee is challengeable. There is no cost to be matched with counsel. You can also see the full picture of solar lawsuits by state.
Credible Law is a national legal resource and attorney referral network, not a law firm, and does not provide legal advice or representation. This article is for educational purposes only and does not create an attorney–client relationship. The allegations described reflect public court filings and regulatory actions that are being litigated; GoodLeap denies wrongdoing, and nothing here states or implies that any court has found the company liable. Information is drawn from public sources and is current as of September 2026. Consult a licensed attorney in your state about your specific situation.
