D.C. sues home remodeling company Curbio
D.C. sued home renovation company Curbio on Monday, alleging it traps homeowners with overpriced bills for substandard work.
Why it matters: Attorney General Brian Schwalb claims the Potomac, Md.-based company targets elderly and low-income residents looking to sell their homes and lies about its promise of speedy, high-quality renovations.
Details: The company advertises its services in dozens of cities. It promises to fix properties 65% faster than competitors and allows homeowners to defer paying renovation costs for up to a year or until the house sells, according to the attorney general's office.
- Curbio claims average returns of 200% on investments.
- But Curbio relies on "low-cost subcontractors to deliver overpriced, low-quality renovations and then encumbers" homeowners with liens or other forms of debt, Schwalb's office said.
What they're saying: "We strongly disagree with the action taken," Curbio said in a statement to Axios, calling the AG's assertions "without merit."
Zoom in: In one example, an 86-year-old homeowner and her grandson in Southwest D.C. agreed to a $57,600 contract for renovations, which ended up going three months over schedule, according to the lawsuit.
- The homeowner claimed that the work was incomplete, but the company nonetheless allegedly recorded a mechanic's lien against the property to collect the full amount of the contract.
The company said the AG's office "cherry-picked a handful of exceptions to the positive experience many of our customers have had, painting a false narrative."
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