In a decisive move to protect homeowners, Michigan Attorney General Dana Nessel has concluded a multi-year investigation into EasyKnock, Inc., resulting in a settlement that permanently bans the company from operating in the state. This action comes after allegations that EasyKnock engaged in deceptive business practices aimed at financially vulnerable homeowners struggling with mortgage or property tax payments.
Settlement Details and Consumer Protections
The settlement not only prohibits EasyKnock and its related entities from conducting business in Michigan but also establishes an $85,000 fund to compensate affected consumers. The investigation, which began in 2024, revealed that EasyKnock’s ‘Sell & Stay’ program misled homeowners into signing over their property deeds under the guise of receiving full property value. In reality, homeowners received only a fraction of their home’s worth, with the remainder diminished by fees and costs.
Moreover, the program’s option for homeowners to repurchase their homes was largely unattainable, as it required traditional financing that these consumers typically lacked. The financial burden increased annually due to rising rent and repurchase prices, often resulting in EasyKnock selling the homes on the open market for profit.
Reforms and Future Compliance
Under the agreement, entities managing EasyKnock’s remaining accounts must implement strict reforms. These include limiting fees and deductions from consumer payouts and ensuring compliance with local and state housing laws. Additionally, tenants can now choose to have their timely rent payments reported to credit bureaus, aiding in credit score improvement.
Attorney General Nessel emphasized the importance of protecting families from predatory schemes, stating, ‘Michiganders struggling to keep a roof over their heads shouldn’t be exploited by predatory companies.’ The settlement aims to safeguard future homeowners from similar deceptive practices.
Original reporting: Tampa Free Press — read the source article.
