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The FTC Holder Rule and solar loans
Why a solar loan may not be separate from what the salesperson promised, what the notice looks like, and its limits.
Last verified October 9, 2026
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The short answer: The FTC Holder Rule, 16 CFR Part 433, makes it an unfair practice for a seller to take a consumer credit contract, or accept proceeds of a loan from a lender it’s affiliated with or refers customers to, unless the credit contract includes a specific notice. Where that notice appears, claims and defenses you could raise against the seller can be raised against whoever holds the loan. Recovery under the notice is capped at the amounts you’ve paid.
Key takeaways
- The notice preserves claims against the seller against the loan holder.
- It matters most when the installer has closed.
- Recovery under the notice is capped at amounts paid.
- Look for the capitalized paragraph in your loan documents.
- Whether it applies to your loan is a legal question.
On this page
What the notice looks like
NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.
Required notice text, 16 CFR 433.2
Search your loan agreement for this paragraph. It’s usually in capital letters, sometimes near the end of the document.
Why it matters for solar
Most solar loans are made by a finance company that isn’t the installer. When things go wrong, homeowners are often told that what the salesperson promised has nothing to do with the loan. The Holder Rule was written to prevent exactly that. When the installer has gone out of business, the notice can be the only remaining path, because the company that made the promises is gone while the company collecting payments is not.
Its limits, stated plainly
- Recovery under the notice can't exceed the amounts you've paid on the loan.
- It preserves claims you have against the seller; it doesn't create new ones.
- It applies to certain consumer credit arrangements, so whether it reaches your loan depends on your documents.
- An attorney should evaluate how it fits with your state's laws.
Installer gone, loan still due?
A free intake checks your loan documents for the Holder Rule notice.
What to do next
Find the notice, gather what the salesperson promised in writing, and keep paying while your options are reviewed. Problems with the loan itself can also be reported at the CFPB complaint portal. See our guide to installers that go out of business.
Common questions
Holder Rule FAQs
What is the FTC Holder Rule?
A federal rule requiring certain consumer credit contracts to carry a notice that preserves claims against the seller against whoever holds the contract.
Does it apply to my solar loan?
It depends on the loan and how it was arranged. Look for the notice and get an attorney’s review.
How much can I recover?
Under the notice, recovery is capped at the amounts you’ve paid.
Does it help if my installer went bankrupt?
It can, because claims against the seller may be raised against the loan holder.
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Solar Cancellation HQ is not a law firm and does not provide legal advice. This page is general information, and reading it or submitting a form does not create an attorney-client relationship. Not every contract qualifies, and no outcome is guaranteed. We never advise anyone to stop making payments on a solar loan, lease or PPA. Laws and utility rules change, so verify before acting. Last verified October 9, 2026.