When Ms. Johnson (name changed for privacy) found a lease-to-own home, she let herself believe that life was finally turning a corner. After months of sleeping on couches and spare beds, she and her nine-year-old daughter could have a place to call their own. The monthly payment was just within reach. For the first time in a long time, she felt hope.
But that hope was short-lived.
The company that owned the property made it clear they would not be responsible for repairs or safety. Desperate for stability, Ms. Johnson signed the lease anyway. Almost immediately, the house began to fail her family.
The roof leaked. Toilets overflowed. Faulty wiring sparked small fires. The heat barely worked, forcing Ms. Johnson and her daughter to huddle together in one room during the coldest nights of winter.
Still, she tried to hold on. Believing she had no choice, she spent what little money she had on repairs. That left her short on rent, and the company seized the opportunity to pile on unlawful late fees. With every payment, she slipped deeper into debt. What Ms. Johnson did not realize was that this practice violated North Carolina consumer protection laws.
This was no small-town landlord trying to get by. It was a powerful real estate investment firm, part of a business model designed to prey on families with few options. They offered the dream of homeownership, but in reality trapped people in dangerous homes and spiraling debt.
That is when Legal Aid of North Carolina stepped in.
Our Consumer Practice Group teamed up with Rebecca Laton of our local office and fought alongside Ms. Johnson, standing up to the company in months of motions, depositions, and ultimately a multi-day trial. For the first time, Ms. Johnson’s voice was heard in a courtroom. And this time, she won.
The court awarded her more than $94,000 for unfair debt collection, with attorney’s fees still to be determined.
“This was a fabulous result, and we hope the impact will change the behavior of this and other companies,” said Jack Lloyd, Consumer Practice Group Manager. “But unfortunately, the number and types of scams targeting North Carolinians is relentless. From contractors swindling disaster victims to illegal debt collection to real estate scams tricking the elderly out of their homes, consumer fraud is a battle at the core of our mission to defend North Carolinians from exploitation.”
Ms. Johnson’s story is about more than one family. It is about exposing predatory business models. It is about protecting vulnerable people from being exploited simply because they want a safe place to live.
Today, Ms. Johnson and her daughter finally have a chance at stability. Her courage, combined with Legal Aid’s advocacy, sends a powerful message: when North Carolina families are threatened by predatory businesses, they are not alone. Legal Aid will be there to fight for them—and to win.