Texas Attorney General Ken Paxton filed a lawsuit against the developers of Colony Ridge accusing them of deceptive sales, marketing, and lending practices. The lawsuit comes after years of complaints from residents and investigations by state agencies. Paxton's office began investigating Colony Ridge last fall, following media attention.
The lawsuit alleges that Colony Ridge developers targeted foreign-born, Latino consumers with fraudulent sales tactics, leading to high foreclosure rates. Paxton stated that the developers' deceptive practices have caused significant harm to nearby communities.
The lawsuit reveals new details about Colony Ridge's marketing practices, including the use of deceptive online listings and social media accounts. Former employees claimed they were required to create fake listings and use misleading tactics to attract buyers. Many buyers later discovered problems with their properties, such as frequent flooding and lack of basic services, leading to financial difficulties and property repossessions by Colony Ridge.
The lawsuit marks a significant state action against Colony Ridge and echoes similar claims made by the U.S. Department of Justice in a separate lawsuit filed in December.
If you are a victim of Colony Ridge and wish to be part of the federal lawsuit drafted by the Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Justice, contact here:
Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC, and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message.
For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to ColonyRidge.Lawsuit@usdoj.gov. ColonyRidge.Lawsuit@usdoj.gov
More information about the Federal Lawsuit
"Colony Ridge and associated companies have inflicted significant pain and suffering on numerous families and individuals. Our fight is for the fundamental rights of happiness and safety that every individual (affected by Colony Ridge) deserves. We remain committed to aiding agencies by providing leads, information, and supporting all who have reached out to us for help."
-Suellen Sanchez y Keilah Sanchez
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Terrenos Houston Demanda drafted an open letter to Attorney General Ken Paxton in 2021 after having filed our personal complaints.
Open Letter to Attorney General Ken Paxton
English