The CFPB fined BloomTech $164K, banned it from issuing student loans, and imposed a 10-year lending ban on its CEO for deceptive practices and false claims.
The US Consumer Financial Protection Bureau (CFPB) has fined high-profile Bay Area coding school BloomTech $164,000 and permanently banned it from issuing student loans. The CFPB alleges that BloomTech, formerly known as Lambda School, deceived students about loan costs, made false claims about graduates' hiring rates, and engaged in illegal lending masked as "income sharing" agreements with high fees. BloomTech now faces a 10-year ban on student lending for its CEO, Austen Allred.
April 17, 2024
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