The company, which faces lawsuits and enforcement actions by attorneys general in multiple states, announced Thursday that it would cease operations about two weeks after receiving a complaint from the Connecticut attorney general.
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EasyKnock, the sale-leaseback platform, has shut down despite facing consumer lawsuits and enforcement actions from attorneys general in multiple states, the company announced Thursday.
“After many years of serving consumers, EasyKnock has closed its doors.” announcement We will post it on our website to inform our visitors. “We are deeply grateful for the trust placed in us to be a part of so many people’s financial journeys. EasyKnock may no longer exist, but we are committed to ensuring continued service to our customers. Arrangements are being made for this.”
The news is first reported By NPR long research article In June about the New York-based sale-leaseback platform’s business practices.
NPR has documented consumer lawsuits against EasyKnock in Texas, Maryland, South Carolina, Pennsylvania, and Ohio, as well as enforcement actions by the attorneys general of Michigan and Massachusetts.
In September, an arbitrator in Texas ruled against a Texas couple who claimed the transaction was actually a sham loan, awarding Easyknock a $153,000 payout. .
But last month, the Connecticut Attorney General’s Office filed a lawsuit against Easyknock, stating that the company “may not be eligible for loans due to poor credit or excessive debt, and that the company may not be able to provide the funds needed for financing.” “It’s targeting struggling homeowners.”
of November 27 complaintThe paper details three cases in which the cash proceeds allegedly represented “a small portion of the consumer’s total home equity” and accuses Easyknock of engaging in illegal activity as a landlord, stating that the company sought an injunction to stop it from doing business in Connecticut and damages. and civil penalties.
Mr. Inman has contacted Easyknock for comment.
Founded in 2016 and based in New York City, EasyKnock closed a $3.5 million seed funding round in 2018. Raise $100 million in new debt Feedback from investors including Montage Ventures, Crestar Partners, and Blumberg Capital.
This was followed by a $12 million Series A in 2019. $203 million in debt financing,and $20 million Series B Most recently, EasyKnock announced $57.2 million in Series C funding. New and existing investorsincludes Blumberg Capital, Gainels, Moderne Ventures, QED Investors, Viola FinTech, and Zillow co-founder Spencer Rascoff.
Editor’s note: Inman’s Taylor Anderson contributed to this article.
Email Matt Carter
