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Deal reached in housing lawsuit with Indianapolis rent-to-own operator

INDIANAPOLIS (WISH) — A settlement agreement has been reached for an Indianapolis rent-to-own housing company and its clients in a federal lawsuit alleging an unlawful rent-to-own scheme.

The settlement compensates Indianapolis based Rainbow Reality Group rent-to-buy customers and the Fair Housing Center of Central Indiana. The agreement also calls for the implementation of several Fair Housing-related policies.

The federal court will hold a final settlement approval hearing in May. As part of the settlement, Rainbow Reality admits no harm or wrongdoing, a release said Wednesday.

The lawsuit was originally filed on May 10, 2017. It says the companies purchased close to 1,000 empty, dilapidated houses in Marion County to perpetrate a predatory and unlawful rent-to-own scheme. Their efforts saddled customers with houses in terrible condition, sales prices inflated by up to 500%, exorbitant interest rates and high late fees, the Fair Housing Center of Central Indiana said in a news release.