“These lawsuits allege that Renovate America and Renew Financial did not provide the most basic consumer protection there is: checking to make sure that homeowners could afford the payment, and the County has has been well aware of that systematic failure for years,” noted Anne Richardson, an attorney with Public Counsel. “By definition, a loan is predatory if the lender doesn’t even try to ascertain whether the borrower can afford it,” said Robert Schwartz of Irell & Manella. This sum far outweighs any financial benefit he is receiving from solar power, and he cannot afford it. Nemore would not qualify for a traditional home improvement loan, yet he was approved for a Renovate America PACE loan for solar panels that will ultimately cost him $71,778 over 25-years. Given his fixed income, poor credit and high debts, Mr. Reginald Nemore, a retired bus driver, was trying to find an economical way, on his limited disability income, to keep his home cooler in the summer to help his wife, who suffers from multiple sclerosis. Together, those contracts represent an annual repayment obligation of $8,200 for the next 20 years, which is 40 percent of her gross annual income. Senac allegedly agreed to a $47,000 contract through Renovate America, and a second $30,700 contract through Renew Financial. She is 87 years old, cannot read English, and her only income is Social Security. For example, Violeta Senac is a plaintiff in both class actions. No matter the intentions, the PACE program has inflicted serious harm on thousands of vulnerable homeowners. PACE financing is enabled under California law and began with good intentions, aiming to help homeowners make environmental-friendly improvements to their homes without any money down. Homeowners alleging financial harm at the hands of the defendants.NOTE: Conference call will be livestreamed on Public Counsel’s Facebook page. What: Media teleconference re: twin class-actions brought by L.A. The plaintiffs – represented by Irell & Manella LLP, and the non-profit law firms Public Counsel and Bet Tzedek – allege they were misled and financially harmed through their participation in the program, and will hold a telephonic press conference to discuss the cases: is complicit in the failings of the PACE program, leaving thousands of low-income, elderly, and non-English fluent residents exposed to predatory lending practices. Los Angeles, CA – Ap– A group of Los Angeles County homeowners filed twin class-action lawsuits today, alleging that Renovate America and Renew Financial – companies that the County of Los Angeles contracted with to operate the Property Assessed Clean Energy (PACE) financing program – have failed to implement basic consumer protections, burdening low- and moderate-income homeowners with home improvement loans that they cannot afford to repay. Joshua Busch, Public Counsel, 31, Werness, Irell & Manella LLP, 31, Lee, Bet Tzedek, 32, for plaintiffs compare “Property Assessed Clean Energy” loans to subprime mortgage crisis – cite missing consumer protections such as ability to repay analysis HOMEOWNERS FILE CLASS ACTIONS AGAINST COUNTY OF L.A., CALIFORNIA FINANCE COMPANIES, FOR UNLEASHING “PLAGUE” OF PREDATORY HOME-IMPROVEMENT LOANS Posted on April 12, 2018
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