US Sues Texas Developer for Deceiving Hispanic Borrowers (1)

The US Justice Department and the Consumer Financial Protection Bureau sued a Texas land developer for allegedly misleading Hispanic borrowers about public services available on land plots, resulting in foreclosures when the borrowers paid to set up those services.

Colony Ridge engaged in predatory lending activities, including aggressive marketing in Spanish on TikTok and other social media platforms, according to the complaint filed Wednesday in the US District Court for the Southern District of Texas. The New Caney, Texas-based company then exploited language barriers to trap borrowers in mortgages with rates as high as 13%, when prevailing mortgage rates averaged ...