Civil Rights Groups Urge Judge to Reject $68 Million Colony Ridge Predatory Lending Settlement

The U.S. Justice Department and Consumer Financial Protection Bureau sued Colony Ridge, a developer near Houston, on December 20, 2023. They alleged that the company used Spanish-language advertising to attract tens of thousands of Hispanic buyers, then subjected them to high-interest loans issued without assessing their ability to repay and to misleading sales practices that led to repeated foreclosures. The case involves fair housing and equal credit protections and could determine whether victims receive compensation.

The Justice Department and Texas announced a $68 million agreement on February 10, 2026, allocating $48 million to infrastructure and $20 million to policing and immigration enforcement, with no direct compensation for borrowers. Eight civil rights groups urged the court to reject it on March 3. Federal Judge Alfred H. Bennett allowed the case to be dismissed on April 28 but declined to endorse or oversee the agreement, criticizing the disconnect between the relief and the original allegations.