Colony Ridge finds itself entangled in a federal lawsuit, facing allegations of predatory business practices. As we delve into the lawsuit, it becomes apparent that many of the allegations we have covered in previous reporting are true, despite the protestations of the developers and their political allies.
The lawsuit claims that Colony Ridge has engaged in what some might describe as deceptive business practices. The lawsuit was brought on by the Consumer Financial Protection Bureau, accusing the company of enticing buyers with promises of fully equipped properties, complete with essential utilities like water, electricity, and sewage.
Reports have surfaced suggesting that Colony Ridge assured buyers that flooding was a non-issue, only for many properties to face sewage spills, resulting in damage. There have been a number of reported lies similar to this.
One noteworthy point of contention is the language barrier that seems to exist within the Colony Ridge experience. Almost all of their advertising is conducted in Spanish, targeting new arrivals to our country from Mexico and other parts of Latin America. While this might seem like a strategic business move, concerns arise when it comes to transparency during property viewings. Allegedly, representatives converse with potential buyers in Spanish, only to present legal documents in English, leaving some unsure about the fine print.
The accusation of offering high fixed interest rates based on down payments raises questions about financial strain and potential foreclosures. The complaint states that Colony Ridge reacquires more than 40% of the properties they sell in foreclosure, and thousands of properties have been sold three or more times.
The lawsuit also mentions limited ID verification, allegedly creating an environment that incentivizes purchases by illegal aliens. These kinds of business practices should have no place in Texas, but it is not surprising that crooked businessmen are taking advantage of the consequences of an open border.
Colony Ridge has had a deleterious impact on both the local community and the buyers themselves. After the failure of the Texas legislature to address the underlying issues there, the federal government is finally taking action against them. We must remain vigilant to ensure that the Colony Ridge model isn’t replicated elsewhere in Texas.