Biden’s DOJ sues Colony Ridge over deceptive sales and predatory financing
The Biden Administration Takes Legal Action Against Colony Ridge for Predatory Practices
The Department of Justice and Consumer Protection Financial Bureau, under the Biden administration, have filed a lawsuit against Colony Ridge, a massive development in Texas, for engaging in “bait-and-switch” land sales and predatory financing practices. This legal action comes as the development has become a hub for illegal immigrants.
The lawsuit, announced today and filed in the U.S. District Court for the Southern District of Texas, alleges that Colony Ridge sold flood-prone land without essential infrastructure like water, sewer, and electricity. Furthermore, it is claimed that the company exploited a language barrier to deceive customers, conducting most of its marketing in Spanish while providing crucial transaction documents only in English.
United States Attorney General Merrick Garland emphasized, “Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer, and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English.”
A September investigation by The Daily Wire shed light on the development’s marketing practices, which seemed to target individuals residing in the United States illegally. Colony Ridge sold affordable plots of land at exorbitant interest rates, specifically appealing to buyers who were ineligible for traditional loans, such as illegal immigrants.
READ MORE: Inside Colony Ridge: The ‘Fastest Growing Development’ In The U.S. Is A Magnet For Illegal Immigrants
The lawsuit names Colony Ridge, led by developers and brothers William “Trey” Harris and John Harris, as defendants. The DOJ and CFPB accuse the company of operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans. Notably, Trey Harris is a significant political donor in Texas, having contributed over $1 million to Republican Gov. Greg Abbott and other prominent politicians.
The announcement of the suit reveals that Colony Ridge engages in a cycle of foreclosure, allowing them to repurchase foreclosed properties and resell them at inflated prices. Additionally, the development takes advantage of language barriers, placing borrowers at a disadvantage.
“Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” stated Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. CFPB Director Rohit Chopra described the operation as a “set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership.”
U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas accused Colony Ridge of exploiting the age-old immigrant’s dream of owning a home, utilizing modern social media applications to target and mislead consumers.
The complaint seeks to halt Colony Ridge’s unlawful practices, provide compensation to affected consumers, and impose a civil penalty payable to the CFPB victims relief fund.
Colony Ridge has been the subject of multiple investigations by The Daily Wire, shedding light on the development’s marketing practices, which appear to target individuals residing in the United States illegally.
How did Colony Ridge attract undocumented immigrants looking for a place to settle down?
Idge: The Fastest Growing Development in the U.S. is a Magnet for Illegal Immigrants
Colony Ridge, located in southeast Texas, emerged as a prime destination for undocumented immigrants looking for a place to settle down. With its affordable land prices and seemingly easy financing options, the development attracted a significant number of buyers who were unable to obtain loans through traditional means. However, the Biden administration sees these practices as exploitative and detrimental to both the buyers and the surrounding community.
According to the complaint, many of the lots sold by Colony Ridge were prone to flooding, making them unsuitable for construction. Moreover, the company failed to provide essential infrastructure such as water, sewer, and electricity, leaving buyers with unlivable properties. These predatory practices disproportionately affected Hispanic consumers, who were targeted with misleading marketing strategies and high-interest loans.
The language barrier played a crucial role in Colony Ridge’s deceptive tactics. Although the majority of the marketing was conducted in Spanish, crucial transaction documents were only provided in English. This exploitation of the language divide allowed Colony Ridge to deceive customers and hide critical information about the properties they were purchasing.
The legal action taken by the Biden administration aims to hold Colony Ridge accountable for these predatory practices and seek restitution for those affected. This lawsuit reflects the administration’s commitment to protecting consumers and ensuring fair and transparent business practices in the real estate industry.
Texas has long been a hub for both legal and undocumented immigrants, and it is crucial to create an environment that safeguards the rights and interests of all individuals. The Biden administration’s legal action against Colony Ridge is an important step in ensuring that vulnerable populations are not taken advantage of and that developers are held accountable for their actions.
As the lawsuit unfolds, it will shed further light on the practices and policies within the real estate industry that exploit consumers and harm communities. The outcome of this legal battle can set a precedent for future cases and deter other developers from engaging in similar predatory practices.
The Biden administration’s commitment to addressing predatory practices in the real estate market extends beyond Colony Ridge. It signals a broader effort to protect consumers and promote fair and equitable opportunities for all individuals, regardless of their legal status. By taking legal action against Colony Ridge, the administration sends a strong message that exploitative practices will not be tolerated, and those who engage in such activities will face the consequences.
As the case progresses, it will be important to closely monitor the developments and outcomes, as they will have implications not only for the affected parties but also for the larger real estate industry and the protection of consumer rights. The legal action against Colony Ridge underscores the importance of increased oversight and regulation to prevent predatory practices and ensure the well-being of consumers in the real estate market.
In conclusion, the Biden administration’s legal action against Colony Ridge is a crucial step towards addressing predatory practices in the real estate industry. By targeting deceptive marketing strategies, exploitative financing practices, and inadequate infrastructure, the administration seeks to protect vulnerable populations and promote fairness and transparency in the market. This case serves as a reminder that consumer protection and social responsibility should be at the forefront of all business practices.
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