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CFPB Fines BloomTech $164K, CEO $100K; Bans Both for 10 Years

Apr 17, 2024, 11:06 PM

The Consumer Financial Protection Bureau (CFPB) has issued a series of penalties against BloomTech, formerly known as Lambda School, and its CEO Austen Allred. The CFPB fined Allred $100,000 and the school $164,000, and permanently banned both from engaging in any consumer-lending activities. Additionally, Allred is prohibited from participating in student-lending activities for ten years. The enforcement action was taken due to deceptive practices related to loan costs and misleading claims about graduate employment rates. BloomTech is also required to pay tens of thousands of dollars in restitution to students and must allow current students the option to withdraw from their contracts and cancel any associated income share agreements.