Late last year, Washington, D.C. Attorney General (AG) Brian L. Schwalb announced the filing of a lawsuit against Curbio, a national pre-sale home renovation platform, for allegedly taking part in a scheme targeting the elderly and financially disadvantaged.
Curbio is a fix now, pay-at-closing home improvement solution for real estate professionals, operating in more than 55 markets nationwide.
In the suit, filed Nov. 20, Schwalb alleges Curbio engaged “in a scheme of deception, intimidation, and fraud that traps District residents—targeting the elderly and financially disadvantaged—into unconscionable contracts, while performing overpriced, substandard work that often takes months—or years—longer than promised.”
Curbio denies the allegations, recently stating to RISMedia, “Curbio does not respond or comment to details related to ongoing litigation. We strongly disagree with the assertions made by the D.C. attorney general’s office, and we have filed our response denying all allegations.
“Not only are the assertions without merit, but they also paint a false narrative of Curbio and the valuable services we provide to repair and update homes before they go on the market while allowing customers to wait until the home sells to pay Curbio,” their response noted, adding, “We work exclusively with real estate agents to get homes ready for market with high integrity and a strong track record of providing quality services to our real estate agents and homesellers.”
According to the AG’s statement, the lawsuit also alleges that Curbio is violating the Consumer Protection Procedures Act—a broadly written law that allows the OAG to pursue injunctions and monetary relief without proving damages. In addition, the OAG alleges violations of the district’s Abuse, Neglect and Financial Exploitation of Vulnerable Adults and the Elderly Act.
Schwalb’s November press release details how Curbio allegedly lied to consumers by “misrepresenting nearly every aspect of its work” such as level of risk, absence of fees or interest, rigorous vetting of its contractors, return investment, extended time working on homes and much more.
According to the court filing, “District of Columbia vs Curbio, Inc.,” the plaintiff’s introduction states that “Curbio pitches itself as a pre-sale home renovation company that can fix up rundown properties 65% faster than the competition—with no risk, hassle, stress, interest, fees or payments until the newly repaired home is sold. But the reality is that Curbio utilizes a collection of low-cost subcontractors to deliver an over-priced, low-quality product—after locking consumers into a one-sided contract from which there is no escape.”
Additionally, Schwalb seeks to ban Curbio’s alleged fraudulent practices in the District of Columbia to protect vulnerable residents, and hopes to recover financial penalties and monetary damages. The OAG claims that the elderly have fallen victim through a network of associated real estate agents that receive undisclosed incentive compensation for fostering Curbio contracts.
“In reality, Curbio traps consumers with exploitative contracts that threaten them with financial ruin,” said Schwalb in the November release. “From its marketing, to its contracts, to its filing of liens against title, to its renovation work itself, to its unauthorized and exploitive lending practices, every aspect of Curbio’s business model is designed to line its pockets by taking advantage of District homeowners.”
Second suit filed
A second suit was brought against Curbio in February, “Anita Johnson v. Curbio”—named after the sole plaintiff—by an elderly homeowner who reportedly experienced such claims made by the Office of the Attorney General.
According to the lawsuit, “This case concerns Curbio’s practice of deceiving limited-income, elderly homeowners like Ms. Johnson into signing contracts for thousands (in this case, over $130,000) in home renovations based on the promise that the homeowners will be able to pay for the renovations when they sell their homes for an increased price, only to turn around and deliver substandard, overly priced work that leaves those like Ms. Johnson with a home in which they can barely live, let alone sell.”
Johnson’s co-head of legal counsel, Matt Rosendahl, told RISMedia that their team stands behind all allegations and complaints, and looks forward to rendering Johson’s rights, while also bringing awareness to Curbio and companies alike.
Both the OAG and Johnson have requested a jury trial.
Curbio’s recent industry news
In February, Curbio announced it is expanding its pay-at-closing home staging service to all markets “following a successful pilot period and increased demand nationwide.”
The company also announced two new industry partnerships last month, first, with HomeSmart to provide its agents with access to concierge, pay-at-closing service, and another with the National Association of REALTORS (NAR), wherein NAR members and their clients receive free access to Curbio’s ‘Build Your Own’ estimate app, which offers free repair estimates.
In 2019, Curbio was recognized for its pioneering approach in the real estate sector by being included in the REACH startup growth program by Second Century Ventures, NAR’s strategic investment arm. That same year, Curbio distinguished itself further by winning the Pitch Battle at the iOi Summit in Seattle.
