For many homeowners, the promise of clean energy and lower utility bills is quickly overshadowed by the reality of a predatory solar loan. GreenSky, a major player in the home improvement financing space, has faced a mountain of complaints from consumers who feel trapped in high-interest contracts they never fully understood—or in some cases, never even authorized. If you are staring at a GreenSky billing statement for a solar array that isn't performing as promised, or if you discovered a loan you didn't sign up for, you are not alone, and you do have legal options.

The CFPB Action: $9 Million in Refunds for Unauthorized Loans

In a landmark 2021 enforcement action, the Consumer Financial Protection Bureau (CFPB) took aim at GreenSky for enabling contractors to secure loans without consumer authorization. The investigation revealed that between 2014 and 2019, GreenSky received over 6,000 complaints from homeowners who claimed they never applied for a loan. In many instances, solar installers used a homeowner's personal information to open a GreenSky account and receive payment directly, leaving the homeowner with a debt they didn't want. As a result, GreenSky was ordered to refund or cancel up to $9 million in loans and pay a $2.5 million civil penalty.

Hidden Fees and the "Merchant Fee" Trap

One of the most deceptive practices alleged in recent class-action lawsuits, such as Belyea v. GreenSky in California, involves the use of "merchant fees." GreenSky typically charges solar installers a fee—averaging around 7% of the total loan amount—to use their platform. Instead of absorbing this cost, many installers simply bake this fee into the total price of your solar project. This means you are effectively paying interest on a fee you were never told existed, significantly inflating the principal of your loan before the first panel is even installed on your roof.

Common Complaints from GreenSky Borrowers