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,” an announcement posted on the company’s website informs 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 was first reported by NPR, which published a lengthy investigative 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.”
The Nov. 27 complaint details three instances in which the cash proceeds allegedly represented “a small portion of the consumer’s total home equity,” and alleges that Easyknock engaged in illegal activity as a landlord. The company is seeking an injunction to bar the company from doing business in Connecticut. , as well as restitution 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, including $100 million in new debt funding from investors including Montage Ventures, Crestar Partners, and Blumberg Capital. did.
This was followed by a $12 million Series A in 2019, which also provided $203 million in debt funding, and a $20 million Series B in summer 2020. Most recently, EasyKnock announced a $57.2 million Series C funding round from new and existing investors. They include 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.
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