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Texas Attorney General’s Lawsuit Against Colony Ridge Developer
In a significant state action, Texas Attorney General Ken Paxton has filed a lawsuit against Houston-area developer Colony Ridge, alleging deceptive sales, marketing, and lending practices that have had harmful effects on the community.
Despite numerous complaints from Colonial Ridge residents over the years, Texas authorities have not taken substantial action to address the issues. Paxton initiated the investigation following allegations linking urbanization to illegal immigration, raised by right-wing media outlets last fall.
The lawsuit accuses developers of engaging in deceptive sales schemes targeting foreign-born Latino consumers, resulting in high foreclosure rates and unfair harm to consumers. The state’s legal action echoes a similar lawsuit filed by the U.S. Department of Justice against Colony Ridge in December.
New Details About Colony Ridge’s Marketing Practices
While some aspects of Paxton’s lawsuit align with federal government findings, new details revealed include aggressive marketing strategies that rely on deception to attract customers. Colony Ridge employees allegedly used tactics like posting false sales ads online, impersonating others, and making false claims about property conditions.
The lawsuit alleges that high-interest rates led to defaults on loans, enabling Colony Ridge to repurchase properties and repeat the process. Many clients found their properties flooded and lacking basic services.
‘A Lot of Pain and Suffering’
A previous investigation found that Colony Ridge reacquired a substantial portion of properties sold in the past decade. The federal government’s lawsuit accused the developer of offering predatory loans to Latino buyers, exacerbating property purchases, executions, and resales.
Latino buyers like Suellen and Keilah Sánchez, who have been vocal about their experiences, highlighted instances of deception, financial loss, and forced relocation at the hands of Colony Ridge. Despite filing complaints, they faced delays and limited response from authorities.
The sisters expressed hope and determination following Paxton’s recent announcement, emphasizing the need for justice for all affected individuals.
Overall, the legal actions against Colony Ridge shed light on deceptive practices that have caused significant harm to consumers and communities.
