Curbio, the Maryland-based pre-listing renovation company that offers pay-later services for homesellers upgrading or repairing their homes, is settling a lawsuit filed by the Attorney General of the District of Columbia that accused the company of violating consumer protection laws through “systematically” deceiving homeowners with its practices and marketing.
According to a release from the Office of the Attorney General, Curbio has agreed to change practices and pay $7.5 million as part of the agreement, which will end the litigation against the company.
Curbio is admitting no wrongdoing as part of the settlement, and continues to deny wrongdoing. In a statement, the company also pushed back against the substance of the litigation, as well as how the attorney general’s office presented and characterized the lawsuit.
“From the outset, Curbio has been disappointed with the aggressive and inflammatory tenor of the District’s complaint, which contains myriad baseless allegations. Today, the District’s announcement of our settlement is similarly bombastic. It does not, in our view, comport with what was agreed to in the settlement,” the company said, pointing to an acknowledgment in the agreement which reads: “Curbio denies any and all allegations in the Complaint and denies that it has violated any law or engaged in any deceptive or unfair practices.”
According to the lawsuit, which was filed back in November of 2023, Curbio failed to live up to promises made to almost 200 homeowners in the D.C. area, carrying out substandard work, charging excessive fees and failing to deliver renovations on time. The lawsuit also claimed that the company targeted elderly residents, and exaggerated expected returns while using liens to force homeowners to pay despite incomplete or poorly performed projects. Curbio has strongly denied these accusations.
As part of the settlement, Curbio will cease making several claims in its marketing materials, including that there is no risk to its services and that subcontractors are “hand picked.” It will also implement a dispute resolution process, and cease filing liens for work that was not completed to the satisfaction of the homeowner.
According to Curbio, however, most of these changes were made well in advance of the lawsuit filing. “The lawsuit was also unnecessary because Curbio had already made most of the marketing and contract changes agreed to in the settlement months and even years before the suit was filed. We proactively make changes whenever we believe they are good for Curbio and our customers,” the company said.
“The decision to negotiate a settlement and forgo our day in court was difficult. Ultimately, as the agreement states, we determined that the time and money we would spend over the next two years to clear our good name would be better spent doing what we do best: modernizing home improvement to make it more accessible, reliable, and successful for REALTORS® and home sellers,” Curbio said.
The agreement also requires Curbio to make “appropriate disclosures” to consumers regarding revenue sharing arrangements with real estate agents and brokerages, with the lawsuit alleging that homeowners were often unaware their agent had a financial relationship with the company. And in D.C., Curbio will be required to consult with local regulators on whether the company needs a lending license, and follow whatever recommendation it receives.
“Curbio remains the leading pre-sale home improvement company in the dozens of markets we serve from coast to coast,” the company said. “Our partnerships with many of the leading real estate brokerages in the country are a testament to the trust we’ve earned from thousands of licensed real estate agents and their clients through quality project work and successful home sales.”
Of the $7.5 million payment, $2.58 million will go directly to 167 homeowners in Washington, D.C., who were allegedly harmed by the company’s practices. And $920,000 will go toward “balance reductions” for consumers who still owe money to Curbio, while the remaining $4 million is paid to the D.C. government.
“We’re happy to resolve this matter and excited to continue the journey with our partners and customers to elevate pre-sale home improvement to a permanent part of the home sales process,” said Curbio.
The attorney general noted that while the agreement “imposes requirements that principally apply to Curbio’s business practices in the District,” the company “has indicated” it will make the changes nationwide.
