The CFPB issued an order against BloomTech and CEO Austen Allred for deceiving students about the true cost of loans and job placement rates. BloomTech falsely claimed income share agreements were not loans, with exaggerated job placement rates as well. The order permanently bans BloomTech from consumer lending, Allred from student lending for ten years, imposes penalties, and requires changes to loan terms. BloomTech misrepresented loan nature, job placement rates, sold loans to investors prematurely, and violated federal consumer protection laws. The CFPB’s actions focus on punishing deceptive practices in the consumer lending industry.
https://www.consumerfinance.gov/about-us/newsroom/cfpb-takes-action-against-coding-boot-camp-bloomtech-and-ceo-austen-allred-for-deceiving-students-and-hiding-loan-costs/