DC attorney general sues home remodeling company Curbio

DC suede 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 encumber” 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 DC 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 nevertheless 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.”