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CFPB Fines BloomTech $164K, Bans CEO for 10 Years

Apr 17, 2024, 11:06 PM

Today, the Consumer Financial Protection Bureau (CFPB) issued an order against BloomTech, formerly known as Lambda School, and its CEO Austen Allred, fining them $164,000. The agency found that they deceived students about loan costs and made false claims about graduates' hiring rates. Austen Allred has been fined $100,000 and is banned from any student-lending activities for ten years. Additionally, BloomTech is permanently barred from all consumer-lending activities. Current students have the option to withdraw from their contracts and cancel their income share agreements.