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.
With so much negative press out over BloomTech, I just wanted to say thanks @Austen for starting a company that provides so much opportunity. My experience start to finish was fantastic. Thanks to BloomTech, I now have a job I love and it provides an incredible life for my family https://t.co/5G1Ey5D4nq
Bloom Institute of Technology, formerly called Lambda School, will be forced to pay tens of thousands of dollars in restitution to students of the San Francisco coding bootcamp after feds say it duped with deceptive loans and fees. https://t.co/wXnSEcNhPm
A San Francisco based coding school, BloomTech, is being fined $160K for 'deceptive acts' against its students: https://t.co/mMS6HFEeDH
I will never say Bloomtech was perfect, but the school gave me hope and confidence. I dropped out of college, was stuck with 32K in student debt, worked in food service for five years, made barely 20K, and was ready to give up. Until I met my partner, I wanted to build a life,…
Bloom Institute of Technology, formerly called Lambda School, will be forced to pay tens of thousands of dollars in restitution to students of the San Francisco coding bootcamp after feds say it duped with deceptive loans and fees. https://t.co/azptr6Gsdu
Coding bootcamp Lambda School — now BloomTech — is finally getting punished https://t.co/DugPtgszw2
High profile for-profit Bay Area coding school BloomTech hit by feds for allegedly tricking students https://t.co/b2yTYz2dz7
The US CFPB fines BloomTech, formerly Lambda School, and CEO Austen Allred $164K and bans it from lending for 10 years for deceiving students on loans, and more (@kyle_l_wiggers / TechCrunch) https://t.co/LzspBhEj7B 📫 Subscribe: https://t.co/OyWeKSRpIM https://t.co/JB9MAunTcg
Lambda School aka BloomTech changed my life I was a broke English major, joined Lambda School and learned Python and SQL, and got a $90k/year job as a data engineer at Amex in 4 months. Extremely grateful for @austen for changing my life. If they didn't have an ISA… https://t.co/4kTDTb2PIG
The CFPB just permanently barred BloomTech/Lambda School from all consumer-lending activities and bans the CEO Austen Allred from any student-lending activities for 10 years! Crazy, but this was always going to be the outcome. What did you expect after pouring millions of… https://t.co/mLBuMKpSx2
Consumer Financial Protection Bureau fines BloomTech for false claims: https://t.co/8kxTlPI1tO by TechCrunch #infosec #cybersecurity #technology #news
BloomTech didn’t get dinged for doing scammy things and financially exploiting people. It got dinged for failing to properly disclose that it was doing those things. Which is a good summary of the US FinReg framework, tbh,
Consumer Financial Protection Bureau fines BloomTech for false claims https://t.co/wYdsXH1prz
Coding boot camp BloomTech and CEO Austen Allred deceived students, US government agency says https://t.co/1HJOrSya3h
bloomtech / lambda has helped many ppl I personally know break into high paying tech careers. We hired their graduates at Divvy. @Austen is a friend and has worked very hard to help people, especially underprivileged people, dramatically improve their life Rooting for Bloom
Austen Allred, founder of BloomTech (formerly Lamba School), a coding bootcamp that offered "income share" on future salaries in lieu of tuition is banned from student lending for 10 years and BloomTech must let students currently under contract withdraw. https://t.co/ul9WWLK3gv
FINALLY! The CFPB has permanently banned the coding bootcamp Lambda School/BloomTech from consumer-lending activities & their CEO, Allred, from any student-lending activities for 10 years Current students can withdraw and cancel their income share loans https://t.co/dk9ZIwR42p https://t.co/TTT1baxcDB
Austen Allred, CEO of Lambda School, was just personally fined $100,000 for “Deceiving Students and Hiding Loan Costs,” and ordered to stop collecting from graduates. I think this saga is coming to a close. https://t.co/CFzhzpM9yH
The CEO of Lambda School was just personally fined $100,000 for “Deceiving Students and Hiding Loan Costs,” and ordered to stop collecting from graduates. I think this saga is coming to a close. https://t.co/CFzhzpMHof
The Consumer Financial Protection Bureau permanently banned BloomTech aka Lambda School from all consumer-lending activities and bans the CEO Austen Allred from any student-lending activities for ten years Wow.
Remember when coding boot camps financed through income share agreements were going to fix everything? @bloomtech fka Lambda School, which counts @ycombinator @GVteam (Google Ventures) @stripe as investors, and founder @Austen personally hit with CFPB enforcement action: https://t.co/pAPNyuubUX
Today, the CFPB issued an order against BloomTech and its CEO, Austin Allred, for deceiving students about the cost of loans and making false claims about graduates’ hiring rates. https://t.co/PO0joM76qF