DBO Warns Consumers About False PACE Default Notices

The California Department of Business Oversight (DBO) issued an alert today about misleading mailers that companies have sent to homeowners with Property Assessed Clean Energy (PACE) financing. These mailers falsely inform consumers that they are behind on payments and facing foreclosure. The entities providing these notices may be in the business of buying properties in foreclosure or providing foreclosure rescue services.

“It appalls me to see anybody preying on homeowners with lies and deceit amidst a global healthcare and financial crisis,” said DBO Commissioner Manuel P. Alvarez.

The DBO encourages consumers with PACE financing who receive a notice from a third party claiming they are behind on payments to contact the company that provided their PACE financing or their county’s tax assessor or collector. Consumers should carefully investigate their situation, particularly if they have no reason to think they are behind on payments. Consumers can also submit complaints about these notices to the Department of Business Oversight at https://docqnet.dbo.ca.gov/complaint/.

The DBO continues to investigate the activities of the entities described above and will take all appropriate actions to ensure they cease their deceptive and unlawful activities.