Class Action Lawsuit Claims Experian Inaccurately Reported Pink Energy ‘Scam’ Loans on Consumer Credit Reports

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A proposed class action lawsuit accuses Experian Information Solutions, Inc. of including inaccurate information on consumer reports about loans associated with Pink Energy’s alleged solar panel scam.

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The 23-page lawsuit claims Experian has “blindly parrot[ed]” false data supplied by “scam lenders” that worked with the now-bankrupt solar company Pink Energy. The case asserts that instead of investigating disputes or examining the credibility of its sources, Experian has continued to report inaccurate data, ignoring consumer complaints, communications from multiple attorneys general, public statements and news coverage about the alleged loan scheme.

By doing so, Experian has violated the federal Fair Credit Reporting Act (FCRA), which requires consumer reporting agencies to undertake reasonable efforts to ensure the “maximum possible accuracy” of the data they publish, the suit contends.

According to the complaint, Pink Energy and its lending partners—including Sunlight Financial LLC; Dividend Solar Finance LLC; GoodLeap, LLC and Solar Mosaic, Inc.—issued the “scam” loans as part of an alleged scheme to defraud thousands of consumers in connection with the purchase of a rooftop solar panel system. Pink Energy has since faced multiple lawsuits over allegedly deceptive sales practices and filed for bankruptcy in October 2022, the suit relays.

In November 2022, numerous attorneys general wrote to Pink Energy’s lending partners requesting they suspend loan payment obligations for victimized consumers, the Experian lawsuit shares.

However, despite publicized statements from the attorneys general and other “readily apparent” information about the alleged scheme, Experian has allowed the lending companies to continue to inaccurately report balances owed on the “bogus loans” on consumers’ credit files, the case contends.

The complaint was filed by three Virginia residents who claim their credit reports show debts owed to one or more of Pink Energy’s lending partners even though they have no loan obligations to these companies.

The plaintiffs disputed the debt with Experian and asserted that the accounts should be deleted from their credit reports, the filing states. However, the suit alleges that the company has failed to conduct proper investigations of the disputes and remove the challenged accounts from the consumers’ files, in violation of the FCRA.

The lawsuit looks to represent all United States residents for whom Experian furnished a consumer report since January 1, 2023 containing an account where the original creditor of the loan was one of Pink Energy’s lending partners, and the account pertains to the purchase of Pink Energy products and/or equipment.

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