D.C. Attorney General Brian Schwalb has filed a lawsuit against Potomac, Maryland-based home renovation company Curbio, alleging it uses a fraudulent scheme that targets elderly and financially disadvantaged homeowners in the District.
D.C. Attorney General Brian Schwalb has filed a lawsuit against Potomac, Maryland-based home renovation company Curbio, alleging it uses a fraudulent scheme that targets elderly and financially disadvantaged homeowners in the District.
Curbio denies the allegations and said it will defend itself against the suit.
Curbio works with real estate agents who represent homeowners who are preparing to sell, makes home repairs and renovations to prepare the home for sale, and collects payment for the work after the home’s sale closes.
In the suit, the attorney general’s office said that Curbio engages in deception, intimidation and fraud that traps D.C. residents into unconscionable contracts, while performing overpriced, substandard work that often takes much longer than promised.
Specifically, it cites violations of the District’s Consumer Protection Procedures Act and the District’s Financial Exploitation of Vulnerable Adults and the Elderly Act.
“From its marketing, to its contracts, to its filing of liens against title, to its renovation work itself, to its unauthorized and explosive lending practices, every aspect of Curbio’s business model is designed to line the pockets by taking advantage of District homeowners,” Schwalb said in a statement.
The lawsuit said that homeowners are prevented from canceling their contracts with Curbio without paying exorbitant fees and penalties. It also said that the company lends homeowners money, despite not having any lending license in the District or complying with the District’s lending disclosure laws.
It is also accused of misrepresenting competitive pricing, lowballing renovation times and greatly exaggerating the likely return on investment.
“They didn’t put the toilet in right, so what happened was I had water leaking from overtime I flushed the toilet,” Khalid Naji-Allah, who bought one of the homes in Southwest, told WTOP.
“The ceiling caved in, buckled in because of the water, the constant dripping of the water.”
Dr. Marquita Danielle Siler says she was promised a 13 week, $57,000 renovation — that she says actually took 10 months.
“There’s still things that have not been completed by Curbio, yet they sent me a demand for $118,000,” she said.
The District’s suit is seeking to recover financial penalties and monetary damages.
A Curbio spokesperson provided a statement to WTOP:
“We strongly disagree with the action taken today. Not only are the assertions made in the complaint without merit, but they also paint a false narrative of Curbio and the valuable services we provide. Curbio has had over 200 customers in DC since 2018, and the overwhelming majority of our projects in DC are completed, go on the market, sell, and we are paid with no issues. It appears the DC attorney general’s office has cherry picked a handful of exceptions to the positive experience many of our customers have had, painting a false narrative, using a few isolated instances and generic market data about elderly home sellers. We believe our customers are reflective of the overall market of sellers, and we tell customers and agents that Curbio is a valuable option for anyone who is ready to sell their home. Curbio is a general contracting business that works with integrity, and we look forward to defending our strong track record of providing quality services to our customers.”
The company also provided a link to past customer testimonials.
The lawsuit cites several specific homeowner examples of complaints against the company.
Curbio, which markets its presale services to real estate agents, was founded in 2017. It now operates in 65 markets across the country. The company ranks No. 63 on this year’s Inc. Magazine list of the fastest-growing private companies in the Mid-Atlantic.
WTOP’s Kyle Cooper contributed to this report.