WASHINGTON — A lawsuit has been announced against a DMV company that allegedly targets older and financially disadvantaged individuals looking for help with their homes.
Curbio, Inc. offers services nationwide, and markets itself as a pre-sale home renovation company that says it can fix rundown properties 65% faster than the competition. The company claims the average return-on-investment is more than 200% and that homes renovated by them sell 50% faster than homes sold as-is. They also state one of their primary benefits is that homeowners can defer payment to them until the house is sold or for up to a year.
The lawsuit alleges Curbio uses low-cost subtractors to deliver over-priced, low-quality renovations and then impedes the home with deeds of trust and liens -- trapping the homeowners. In Curbio's contracts, homeowners are prevented from taking the necessary steps to mitigate the harm: they are forbidden from doing the work themselves, prevented from borrowing money against their equity to hire more qualified contractors, and prevented from canceling the Curbio contract without paying excessive fees and penalties, according to the lawsuit.
Attorney General Brian L. Schwalb, of D.C., said Monday that the lawsuit alleges that Curbio engages in a scheme of deception, intimidation, and fraud that traps District residents into unconscionable contracts, while performing overpriced, substandard work that often takes months—or years—longer than promised. The accused practices violate the District’s Consumer Protection Procedures Act and the District’s Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act, Schwalb said.
“For many Washingtonians, especially long-term residents, their homes are their primary asset and, thus, primary source of financial stability,” said AG Schwalb. “Recognizing the financial significance the sale of the family home can have for District residents, Curbio targets elderly residents with an unconscionable scheme that lures them in with false promises of quick, high-quality renovations promised to generate heightened sales prices. In reality, Curbio traps consumers with exploitative contracts that threaten them with financial ruin. 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.”
Curbio, however, has responded that the lawsuits claims are "without merit" and "paint a false narrative of Curbio."
“We strongly disagree with these assertions and are disappointed that the D.C. attorney general’s office has decided to take this action," a spokesperson wrote in a statement to WUSA9. "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 waiting until the home sells or up to twelve months from contract for payment. We are a general contractor that works with integrity, and we look forward to defending our strong track record of providing quality services to our customers.”
The company said they have served 200 customers in D.C. since 2018 and claims tge majority of their projects get sold with no issue. A spokesperson for Curbio alleges that the AG's office has "cherry picked" a handful of exceptions to their normal customer experience.
The attorney general is seeking to permanently prevent Curbio's alleged fraud, misrepresentations, and illegal exploitation of District residents and to recover financial penalties and monetary damages as compensation for the harm its illegal practices have caused.