D.C. AG Settles with Home Flipping Company That Allegedly Took Advantage of Homeowners

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  • District of Columbia AG Brian Schwalb settled with Curbio, Inc., to resolve allegations that it deceptively marketed and sold contracts for pre-sale home improvements in violation of the District’s consumer protection laws.
  • The complaint alleges that Curbio—a company that claims to assist home-sellers in flipping run-down homes for sale—failed to disclose that it overcharges for construction services to compensate for lending risk associated with its practice of allowing homeowners to defer payments until after their homes are sold, that it does not have a lending license, and that certain real estate agencies may receive compensation for referrals; misrepresented fees, interest, average return on investment, decreased time on the home sales market after renovations, and project completion times; and sought to enforce unconscionable terms in sales contracts with homeowners.
  • Under the terms of the settlement, Curbio will pay $3.5 million for consumer redress and $4 million in civil penalties, among other terms.
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