Key facts
- Unlock Technologies will treat its home equity agreements as consumer credit under Colorado law.
- The company must pay restitution to affected homeowners and comply with state licensing and disclosure rules.
- Colorado regulators concluded that Unlock's contracts function as loans subject to interest rate limits and consumer protections.
- Unlock has identified $283,375 in restitution owed to 125 Colorado homeowners for contracts exceeding state interest rate limits.
Unlock Partnership Solutions Inc., operating as Unlock Technologies, has reached an agreement with the Colorado attorney general’s office to comply with state laws regarding its home equity agreements (HEAs). The company will now treat these agreements as consumer credit, adhere to Colorado's Uniform Consumer Credit Code (UCCC), including rate caps and disclosure requirements, and obtain necessary state licenses.
This settlement follows a determination by Colorado regulators that Unlock's HEA contracts function as loans, not unregulated investment products. Homeowners receive a lump-sum payment in exchange for a percentage of their home's future value. The state concluded these arrangements are subject to interest rate limits and other consumer protections.
As part of the agreement, Unlock must pay restitution to affected consumers. As of June 24, the company identified $283,375 owed to 125 Colorado homeowners whose contracts exceeded state interest rate limits. This amount is anticipated to grow as more loans are finalized.
Attorney General Phil Weiser stated that the agreement ensures homeowners receive owed restitution and that Unlock will follow Colorado lending laws moving forward. The action highlights increasing state scrutiny of alternative home equity products and signals that shared-equity agreements may be treated as consumer credit, requiring full application of rate caps, disclosures, and licensing rules.