After receiving more than 15 complaints, Alternative Lending of Colorado, a Colorado Springs-based company, and its managing general partner, James W. Dale III, 64, Pueblo West, Colorado, and top loan originator, April A. Bigler, 29, Pueblo West, Colorado, have been sued for allegedly deceptive trade practices.

According to the filed complaint at Fremont County District Court, Bigler engaged in deceptive trade practices like misrepresenting loans’ interest rates, quoting monthly mortgage payments to consumers that did not include taxes and insurance costs, and delaying closings to pressure consumers into signing a mortgage. It is also reported that Bigler worked with appraisers to over-value homes, resulting in borrowers owing more on their homes than they were worth; failed to attend closings, which did not allow borrowers to ask questions about the terms of their loans; inflated borrowers’ incomes on their mortgage applications; and failed to provide timely, accurate or complete disclosures to borrowers.

Nearly 44 percent of borrowers for whom Bigler originated a mortgage loan experienced some type of foreclosure action. Dale is alleged to have known about Bigler’s misconduct and not taken any disciplinary action. The alleged misconduct took place between 2004 and 2008 reported by the Office of the Attorney. The majority of the borrowers for whom Bigler originated mortgage loans live in Cañon City, Colorado.

As part of its lawsuit, the Office of the Attorney General is seeking restitution for the victims of Alternative Lending’s business practices, civil penalties, disgorgement of unjust proceeds, and an injunction, barring the defendants from engaging in false and deceptive lending practices.