Colony Ridge Lawsuit 2026, $68M Predatory Lending Settlement + $2M TCPA Class—Homebuyers Get Loan Relief, Text Victims Get $1,000-$2,000 Each
Colony Ridge faces two major settlements in February 2026. The owners of Colony Ridge agreed to a sweeping legal settlement that will require them to invest in law enforcement and infrastructure on their properties and tighten selling practices, totaling $68 million to resolve federal and state predatory lending lawsuits announced February 10, 2026. Separately, a $1.9 million class action settlement over unsolicited marketing texts awaits final court approval on February 17, 2026, offering eligible consumers $1,000-$2,000 each.
What Are The Colony Ridge Lawsuits About?
Predatory Lending Lawsuit ($68M Settlement):
The agreement resolves the state and federal lawsuits, which alleged the owners of Colony Ridge lured would-be Spanish-speaking homebuyers into seller-financed mortgages with high interests that they could not afford. The Consumer Financial Protection Bureau (CFPB) and Department of Justice filed suit in 2023, while Texas Attorney General Ken Paxton filed a separate state case alleging fraud and deceptive trade practices.
The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer, or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Federal authorities estimated roughly one in four Colony Ridge loans ended in foreclosure. The company would then repurchase properties and resell them to new buyers.
TCPA Class Action ($1.9M Settlement):
The class action lawsuit against Colony Ridge Development alleged that the company sent more than one advertising or marketing text message to residential telephone numbers, including to ones listed in the National Do-Not-Call Registry, without obtaining prior express written consent, in violation of the Telephone Consumer Protection Act. This settlement affects up to 71,700 consumers who received unsolicited texts between June 27, 2020 and May 7, 2025.
$68 Million Predatory Lending Settlement Terms
The February 10, 2026 settlement requires Colony Ridge to:
Infrastructure Investment:
Spend $48 million on roads, drainage systems, and essential infrastructure improvements to address misrepresented property conditions.
Law Enforcement Funding:
Earmark $20 million for law enforcement, including construction of a new police station within the community and funding specifically for immigration enforcement. The settlement also offers discounts to peace officers to encourage them to live in the development.
Development Pause:
Halt seeking approvals for new residential plats for three years while addressing existing property issues.
Loan Reform:
Establish new criteria for approving loans and offer relief to customers facing foreclosure. The settlement directs owners to develop a plan addressing harms to borrowers’ credit.
Buyer Verification:
Would-be purchasers will now have to present a Texas ID or driver’s license or a passport or visa, tightening documentation requirements from previous practices.
Truthful Marketing:
Ensure all advertising and marketing materials accurately represent property conditions, available utilities, and financing terms.
Who Qualifies For The $68M Settlement?
The predatory lending settlement primarily provides infrastructure improvements and loan relief to current Colony Ridge property owners and borrowers rather than direct cash payments. Affected parties include Hispanic families who purchased land through seller-financed mortgages between approximately 2017-2025 in the Colony Ridge developments near Houston.
Colony Ridge targets foreign born and Hispanic consumers with limited or no access to credit with promises of cheap, ready to build land and financing without proof of income, according to the state lawsuit. Borrowers facing foreclosure may qualify for loan relief programs established under the settlement.
TCPA Text Message Settlement: Who Qualifies?
Colony Ridge Development settlement class members who submit a valid, timely claim form are eligible to receive a one-time, pro-rated cash payment of approximately $1,000 to $2,000. Eligible individuals must have:
- Received more than one advertising text from Colony Ridge/Terrenos Santa Fe between June 27, 2020 and May 7, 2025
- Had their phone number listed on the National Do-Not-Call Registry for at least 30 days before receiving at least two marketing texts
- Received texts within a 12-month span
Approximately 71,700 people may fall within this settlement class according to court filings.
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How To File A TCPA Claim
Settlement class members received postcard notices containing unique class member IDs. To file online, visit www.ColonyRidgeTCPASettlement.com and enter your class member ID from the notice postcard. Claims can also be mailed to: Colony Ridge Settlement Administrator, P.O. Box 995, Milwaukee, WI 53092.
The court will determine whether to grant final approval to the Colony Ridge Development settlement at a hearing on February 17, 2026. Compensation will only be distributed after final approval and resolution of any appeals.
When Will Payments Be Issued?
TCPA Settlement:
Eligible class members will receive their payout via check, which must be cashed within 120 days after the date of issuance before it expires. Payments begin only after the February 17, 2026 final approval hearing and any appeals are resolved, likely in spring or summer 2026.
Predatory Lending Settlement:
Infrastructure improvements and loan relief programs will be implemented over the next several years according to court-supervised timelines. No direct cash payments to individual borrowers are specified in the $68M settlement.
Colony Ridge’s Foreclosure Rate
On October 31, 2023, a Colony Ridge representative testified before the Texas Senate that CR Land’s foreclosure rate is 12%, roughly 50 times greater than the 2023 nationwide foreclosure rate of 0.26%. Even during the 2009 housing crisis peak, the national foreclosure rate was only 2.22%.
Common Misconceptions
Misconception: All Colony Ridge buyers get cash refunds.
Reality: The $68M settlement funds infrastructure and loan relief, not direct cash payments. Only the TCPA text settlement offers individual cash payments ($1,000-$2,000).
Misconception: Filing a TCPA claim requires proof of texts.
Reality: Some class action settlements require no proof to submit a claim. Colony Ridge settlement administrators identified eligible class members through company records.
What Happens Next?
The federal court holds the TCPA final approval hearing on February 17, 2026. The $68M predatory lending settlement implementation begins immediately with infrastructure projects, law enforcement funding, and loan relief programs rolling out through 2029.
The settlement restricts Colony Ridge from developing new residential plats for three years and directs the developers to invest $48 million in infrastructure improvements and $20 million in increased law enforcement presence. Existing homeowners will see gradual improvements to roads, drainage, and utility access over the coming years.
FAQs
What is the Colony Ridge lawsuit about?
Colony Ridge faces two separate lawsuits: (1) a $68 million predatory lending settlement with federal and state authorities alleging deceptive marketing and seller-financed mortgages targeting Hispanic families, resulting in 12% foreclosure rates; (2) a $1.9 million TCPA class action for sending unsolicited marketing texts to 71,700 consumers on the Do-Not-Call Registry.
Who is eligible for the Colony Ridge TCPA settlement?
Consumers who received more than one marketing text from Colony Ridge/Terrenos Santa Fe between June 27, 2020 and May 7, 2025 while their number was on the National Do-Not-Call Registry for at least 30 days. Eligible class members receive approximately $1,000-$2,000 each.
How do I file a claim in the Colony Ridge text message settlement?
Visit www.ColonyRidgeTCPASettlement.com and enter your class member ID from the postcard notice, or mail your claim to Colony Ridge Settlement Administrator, P.O. Box 995, Milwaukee, WI 53092. The final approval hearing is February 17, 2026.
What is the deadline to file a Colony Ridge TCPA claim?
Check your postcard notice for the specific claim deadline. The court holds the final approval hearing on February 17, 2026. File claims as soon as possible to ensure eligibility before the deadline passes.
What compensation is available in the Colony Ridge settlements?
The TCPA settlement offers $1,000-$2,000 cash payments per eligible claimant via check. The $68M predatory lending settlement provides infrastructure improvements ($48M), law enforcement funding ($20M), and loan relief programs for borrowers facing foreclosure—not direct cash to individual homebuyers.
Do Colony Ridge property owners get refunds?
No direct refunds are specified. The $68M settlement requires Colony Ridge to improve infrastructure, halt foreclosures for qualifying borrowers, establish better loan approval criteria, and develop credit harm remediation plans. Benefits come through improved property conditions and foreclosure relief, not cash refunds.
When will I receive my Colony Ridge settlement payment?
TCPA settlement checks will be mailed after final court approval on February 17, 2026 and resolution of any appeals, likely spring/summer 2026. Checks must be cashed within 120 days. Infrastructure improvements and loan relief programs under the $68M settlement roll out over 2026-2029.
Last Updated: February 11, 2026
Disclaimer: This article provides general information about Colony Ridge lawsuits and is not legal advice. Settlement terms are subject to final court approval.
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