- Background
In November 2023, the District of Columbia Attorney General’s Office sued Curbio—an Maryland-based home renovation company that offers pre-sale renovation services with deferred payments—alleging deceptive practices, inflated costs, substandard work, and targeting of elderly residents.
- Settlement Overview
On September 12, 2024, Curbio agreed to a $7.5 million settlement:
$3.5 million directed as restitution and credits to over 180 D.C. homeowners who filed complaints.
$4 million paid to the District of Columbia.
Curbio denied any wrongdoing, describing the allegations as “baseless,” and stated that the settlement reflects a business decision to move forward rather than litigate for two more years.
- Agreed-Upon Business Practice Reforms
Curbio has committed to sweeping operational changes, including:
Verbal and marketing restrictions:
No more misleading claims about risk, speed of renovation, return on investment, contractor vetting, or “no-risk” guarantees.
Contract clarity and fairness:
Remove “unconscionable” terms from standard contracts.
Provide written contracts with detailed scopes of work that can only be modified by homeowner-signed written change orders.
Dispute resolution:
Implement a published, binding dispute resolution process, including an internal consumer advocate and third-party inspection/mediation.
Fee and disclosure transparency:
Disallow undisclosed fees and mandate disclosure of any revenue-sharing arrangements with real estate agents or brokerages.
Legal and regulatory compliance:
In D.C., work with regulators to determine required lending licenses and discontinue using deeds of trust or filing liens for incomplete work.
- Financial Distribution Breakdown
Per multiple sources, the $7.5 million will be allocated as follows:
Purpose Amount
Restitution to homeowners $3.5 million
Civil penalties paid to D.C. $4.0 million
— Customers prior to lawsuit ~$2.58 million
— Balance reductions for current customers ~$920,000
- Curbio’s Response & Industry Context
Curbio emphasized that many required changes were already being implemented before the lawsuit. The company positioned the settlement as a strategic choice to focus on serving real estate partners and clients.
Despite the settlement, Curbio’s partnerships—including with the National Association of Realtors (NAR)—remain intact.