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Friday, February 19, 2010

Banks Pre-Approval On Green Loan : Good Idea?


Some Green Loan Program clients assessed in October, have still not received Home Sustainability Reports! November and December's clients reporting the same, when contacted today by GLP Assessor.

Some of the Green Loan lenders are giving pre-approval on the loans. GLP Assessor thinks this is not a wise idea!

Why? Client's are being pushed by the Solar provider to order. Once ordered, some suppliers are installing the goods, to await connection after approval. What happens if the client cannot pay, without the loan being approved?

This morning a GLP Assessor client reported, the goods are on the roof, awaiting connection on complete approval of the loan. When will this approval occur though, whilst the reports are still not arriving.

Questions arise regarding this scenario:

  • What happens if the loan is never approved?
  • Will the Solar Provider seek monies from the client?
  • How will the Solar Provider seek installation / de-installation costs and off who?
  • How can a weathered second hand system be sold?
  • If the GLP finishes tomorrow, what happens to these pre-approved loans?

Of course this is only the tip of the ice berg, with many questions still to be asked!

Yet again this could be very messy. Is there not anyone checking the delivery of this scheme? I am sure there were meant to be auditors? During the scheme, or after the scheme falls off the rails!

In most cases it would appear, it is the Solar Providers, pushing the client for the pre-approval, so they can place the order!

And what if the Government had delivered the reports on time! Well this post would not be here!

Your comments on this post please.

Information is edited / supplied by GLP Assessor at 'http://glpassessor.blogspot.com'.

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