CFPB Bans BloomTech from Lending, Fines CEO $100K for Deceptive Practices

Apr 17, 2024, 06:04 PM

The Consumer Financial Protection Bureau (CFPB) has taken significant enforcement action against BloomTech, formerly known as Lambda School, and its CEO Austen Allred. The CFPB issued an order citing deceptive practices related to student loan costs and false claims about graduate hiring rates. As a result, BloomTech is permanently banned from all consumer-lending activities, while Austen Allred is banned from student-lending activities for ten years. Additionally, Allred has been personally fined $100,000 and is required to cease collecting payments from graduates. Current students at BloomTech have the option to withdraw and cancel their income share agreements.