Attorney General Schwalb Announces Home Renovation Company Curbio Will Pay $7.5 Million to Consumers & DC

Agreement Will Resolve Lawsuit Alleging Curbio Engaged in Scheme Targeting District Residents, Trapping Them in Financially Devastating Contracts


Attorney General Brian L. Schwalb today announced that home renovation company Curbio, Inc. (Curbio) will pay $7.5 million to harmed consumers and the District and will overhaul how it does business in the District and across the country, in order to resolve a 2023 consumer protection lawsuit brought by the Office of the Attorney General (OAG).

In its lawsuit, OAG alleged that Curbio—which markets itself as a pre-sale home renovation company that allows owners to defer payment until after their home is sold—systematically deceived DC homeowners, trapped them in unconscionable contracts, and performed overpriced, substandard work that took months or years longer than promised. Under the terms of the settlement agreement, Curbio must immediately pay $3.5 million in restitution and credits to more than 180 DC homeowners. Curbio must also pay an additional $4 million to DC, eliminate its unconscionable contract provisions, stop making misleading marketing claims, and make other changes to the way it does business.

“For many District families, the equity in their home is, by far, their most valuable asset—and Curbio’s deceptive scheme preyed upon homeowners seeking, through the sale of their home, to realize that equity,” said Attorney General Schwalb. “This is a significant win for nearly 200 DC homeowners who Curbio lured in with false promises of quick, high-quality renovations designed to increase sale prices, but who were then exploited, intimidated, and overcharged. These homeowners will finally receive some compensation for the hardship they endured, and Curbio will be required to make sweeping changes to its predatory business practices in DC and across the nation.”

Curbio markets itself as a pre-sale home renovation company that claimed to fix run-down properties faster than the competition and to provide huge value to home-sellers. The company is based in the DC area but provides services nationwide. Curbio claimed that its customers’ average return on investment was more than 200%, and that homes renovated by Curbio sold 50% faster than homes sold as-is. Curbio typically touted that homeowners could defer payment on renovations until the house was sold.

In 2023, OAG filed suit against Curbio, alleging that the company misled consumers and misrepresented nearly every aspect of its work, charged excessive fees, and clouded the title of over 100 DC properties. The suit detailed how Curbio used a collection of low-cost subcontractors to deliver over-priced, low-quality renovations, on far longer timelines than promised—and how it encumbered homes with deeds of trust or liens, trapping homeowners who were trying to sell and move quickly. Additionally, Curbio targeted its services to elderly DC residents who are most likely to own fixer uppers with high levels of equity, greatly exaggerated likely returns on investment, and threatened and intimidated consumers to enforce unconscionable contract provisions.

Under the terms of the settlement, Curbio must:

  • Pay $7.5 million to harmed residents and the District, including:
     
    • $2.58 million in restitution to 167 harmed DC consumers. Within 30 days, consumers will receive payments ranging from $2,200 to $83,000.
       
    • $920,000 in balance reductions to 21 DC consumers who still have outstanding balances on their accounts. Within 30 days, these consumers will see balance reductions ranging from $9,800 to $180,000.
       
    • An additional $4 million paid to DC by 2025.
       
  • Reform its business practices in the District by:
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    • Ending its use of misleading marketing claims about risks, fees, speed of projects, vetting of contractors, or expected returns on investments.
      ​​​​​​​
    • Not charging any undisclosed fees.
       
    • Developing a published and binding consumer dispute-resolution process to make sure renovation work is done properly. This will include hiring an internal consumer advocate, as well as referring disputes not resolved internally to a third-party home improvement inspection and mediation company, whose decisions will be binding.
       
    • Removing unconscionable terms from the standard contract Curbio uses across the country.
       
    • Disclosing any revenue-sharing arrangements with real estate agents or brokerages to consumers.
       
    • Providing a written contract including a detailed scope of work and costs that can only be modified by written change orders signed by homeowners and Curbio.
       
    • Providing homeowners with more realistic estimated project timelines.
       
    • Ending use of deeds of trust in connection with home improvement contracts and ending the practice of filing mechanics’ liens for work that has not been completed to consumers’ satisfaction.
       
    • Working with District regulators to properly obtain any lending licenses that the regulators determine are required for the company to do business in DC.

Although the settlement agreement imposes requirements that principally apply to Curbio’s business practices in the District, Curbio has indicated that it intends to modify these practices nationwide.

A copy of the settlement agreement is available here. 

This matter was handled by Assistant Attorneys General Jason Jones and Monique Gudger, supervised by Alicia M. Lendon, Chief of the Civil Rights & Elder Justice Section.
 

Resources for District Residents

To report unfair business practices, scams, or fraud, you can contact OAG by: 

For scams and fraud perpetrated against District elders, contact OAG’s Civil Rights & Elder Justice Section at (202) 727-3807 or elderjustice@dc.gov.

Visit OAG’s website to learn more about the office’s work to protect DC consumers.