Can I Sue Momnt Over a Failed Home Improvement Project Involving Financing?
If you financed a bathroom remodel or other home improvement project through Momnt and the contractor never completed the work—or did subpar or defective work—you may still be stuck making payments. Federal and state consumer protection laws, including the Federal Trade Commission’s Holder Rule and Cooling-Off Rule, may give you claims against the lender or financing platform. Kneupper & Covey is investigating these claims and can help you understand your rights at no cost unless we recover money for you.
Tell Us What Happened
Fill out our short questionnaire or call 657-845-3100 for a free evaluation. We ordinarily accept cases on a contingent fee basis, which means you pay no fees unless we win.
What Is Momnt and How Does Its Financing Work?
Momnt Technologies, Inc. (and its servicing affiliate, Momnt Servicing Company LLC) is an Atlanta-based fintech platform that facilitates point-of-sale financing for home improvement projects and medical services. It does not usually lend the money itself. Instead, it connects consumers with banks such as Cross River Bank and Primis Bank. The typical process is:
- A contractoror other merchant offers financing through Momnt.
- The consumer applies (often on a tablet in their home) and is approved nearly instantly.
- The bank funds the full (or nearly full) amount to the merchant immediately.
- The consumer then makes monthly payments to the bank using Momnt’s platform.
This structure can create a powerful incentive for merchants to take the money and disappear,do incomplete work, or close before the services have been fully provided. Once the merchant has been paid in full, it has little motivation to finish the jobor complete the services. Consumers across the country have reported this exact problem with Momnt-facilitated loans. If you’re one of them, or have this complaint, we’d like to talk to you.
Common Problems Consumers Report with Momnt Loans
Public complaints, Better Business Bureau records, news investigations, and legal filings describe a consistent pattern:
- Merchant paid in full but never performed the work. Some consumers allege that they financed bathroom remodels or windows through Momnt-partnered contractors. They claim that the contractor received the entire loan proceeds the same day the contract was signed, then never showed up. Months or years later, the consumers say they still owed the loan. Similar allegations appear in news reports about Momnt and GutterGard South.
- Contractor went out of business or absconded with funds. Momnt itself has sued multiple merchants (including home improvement contractors) alleging they pocketed loan proceeds intended for consumer projects. Rating agencies have noted fraud-related issues affecting Momnt loan pools. See also reporting on Momnt’s lawsuit against a contractor.
- Provisional credits given then yanked. After complaints mounted, some consumers say they received temporary payment pauses and provisional credits. They allege that once it became clear the merchant would not repay Momnt and the bank, those credits were removed and collection efforts resumed—even though the underlying work was never done.
- Negative credit reporting and aggressive collection. Consumers who stopped paying because they never received the services have sometimes reported adverse credit reporting, collection calls, and threats that non-payment would damage their credit. Some say they saw credit scores drop dramatically. The CFPB complaint database reflects a significant number of credit-reporting and debt-collection complaints involving Momnt.
- Failure to honor cancellation rights. Door-to-door or in-home sales are often subject to the FTC Cooling-Off Rule, which gives consumers three business days to cancel. Some consumers report that cancellation requests were ignored or that financing was already fully funded before the cancellation window closed.
Does the Holder Rule Apply to Momnt Loans?
Yes, in many cases. The Federal Trade Commission’s Preservation of Consumers’ Claims and Defenses (the “Holder Rule”) applies to consumer credit contracts for the purchase of goods or services. It preserves the consumer’s claims and defenses against the seller and makes them available against any subsequent holder of the note (such as the bank or financing company).
In practical terms, this means:
- If the contractor failed to perform, delivered defective work, or committed fraud, you may be able to assert those same defenses against Momnt or the bank.
- You may not be obligated to keep paying for work that was never done.
- You may have claims for damages, credit correction, and other relief against the financing entities.
The Holder Rule is a powerful tool in home-improvement financing cases precisely because the lender or platform is often the only remaining party once the installer has disappeared.
What About the Cooling-Off Rule?
The Federal Trade Commission’s Cooling-Off Rule gives consumers three business days to cancel certain door-to-door or in-home sales of goods or services that cost more than $25. Home-improvement contracts signed at the consumer’s home frequently fall under this rule. If the seller failed to provide proper cancellation notices, or if the consumer timely canceled but the financing was still funded and collection continued, additional claims may exist under state unfair and deceptive practices laws that incorporate the Cooling-Off Rule.
Examples of Consumer Complaints (Generalized)
While every situation is unique, the following allegations often appear in complaints and legal filings involving Momnt-facilitated financing. One publicly filed case raising similar claims is McCarley-Foxworth v. Momnt Technologies, Inc., et al., No. 1:26-cv-00120 (N.D. Ga.). Similar allegations have also been raised in consumer arbitration demands.
Example 1: Same-day funding, no work performed
A homeowner alleges they signed a contract for a bathroom remodel with a Momnt-partnered contractor. The full loan amount was funded to the contractor the same day. The contractor never began the work. After the homeowner complained, a provisional credit was briefly applied, then later removed. Collection efforts and negative credit reporting continued even though the project was never started. Comparable facts are described in the publicly filed McCarley-Foxworth case (No. 1:26-cv-00120, N.D. Ga.) and in news coverage of Momnt-funded projects.
Example 2: Credit score damage after non-performance
Another consumer allegedly financed a home improvement project through Momnt. The merchant received the funds and failed to complete the work. When the consumer stopped payments, the account was reported as delinquent. The consumer’s credit score dropped substantially. A third-party debt collector was later involved. These types of credit-reporting and collection issues appear repeatedly in BBB and CFPB-related complaints.
Can I Sue Momnt or the Banks They Work With?
In many situations, yes, and we’re happy to help you evaluate whether you can. Potential claims may include:
- Violations of the Holder Rule (failure to honor consumer defenses).
- Violations of the Cooling-Off Rule or state equivalents.
- Unfair or deceptive acts and practices under state consumer protection statutes (such as the Georgia Fair Business Practices Act and similar laws in other states).
- Fair Credit Reporting Act (FCRA) claims if negative information was reported without a reasonable investigation after a dispute.
- Claims related to fraud, misrepresentation, or bad-faith collection practices.
Whether a specific case has merit depends on the facts, the documents you signed, the timing of funding, and the applicable state law. An attorney can review your contract, loan documents, and communications to evaluate your options.
Frequently Asked Questions About Momnt Loans and Lawsuits
Can I stop paying a Momnt loan if the contractor never finished the work?
You may have the legal right to stop payments or assert defenses under the Holder Rule if the seller failed to perform. However, simply stopping payment without a plan can trigger collections and credit damage. Consult an attorney before taking that step.
What is the Holder Rule and how does it help home improvement customers?
The Holder Rule preserves your claims and defenses against the seller and makes them available against the bank or financing company that holds your note. If your contractor failed to perform the services they were paid for, you may be able to use that failure as a defense against the lender.
Does the three-day cancellation right apply to home improvement contracts?
In many cases yes. The Cooling-Off Rule covers certain sales made at your home. If the sale was made in-home and the proper notices were not given, or if you canceled within the period but the loan was still funded, you may have additional claims.
Can I sue Cross River Bank or Primis Bank if Momnt handled the financing?
Yes. Cross River Bank and Primis Brank are frequently the actual lenders in Momnt-facilitated transactions. If they are the holder of the note, they can be subject to the same Holder Rule defenses and other consumer claims.
What damages can I recover in a Momnt case?
Possible relief can include cancellation or reduction of the debt, refunds of payments made, correction of credit reporting, statutory damages under consumer protection laws, and in some cases attorney’s fees and costs. The exact relief depends on the claims and facts of your case.
Why Choose Kneupper & Covey?
Kneupper & Covey focuses on consumer protection matters, including cases involving home-improvement loan and lender liability under the Holder Rule and related laws. We offer:
- Free case evaluations.
- Contingency-fee representation — you pay no attorney’s fees unless we recover money for you.
- Experience with the specific issues that arise in Momnt financing disputes.
If you have been harmed by a Momnt-facilitated home-improvement loan, contact us for a free consultation at 657-845-3100.