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Bloom Institute of TechnologyAbout
Important information
- Government Actions:Government Action: BBB reports on known government actions involving business’ marketplace conduct:UNITED STATES OF AMERICA CONSUMER FINANCIAL PROTECTION BUREAU v BLOOMTECH INC. (D/B/A BLOOM INSTITUTE OF TECHNOLOGY OR BLOOMTECH, F/K/A LAMBDA, INC.) AND AUSTEN ALLRED
On April 17, 2024, BloomTech Inc. DBA Bloom Institute of Technology or BloomTech, F/K/A Lambda Inc. and CEO Austen Allred agreed to a consent order (File No. 2024-CFPB-0001) brought against the company by the Consumer Financial Protection Bureau (CFPB).
According to the Stipulation, Bloom Institute of Technology was in violation of the Consumer Financial Protection Act 2010, when the company deceived students about loan costs and inflated graduates hiring rates. The CFPB is accusing Bloom Institute of Technology of deceiving prospective students from 2017 to 2024 by claiming their ISAs are not loans, did not create debt, carried no finance charge, and are risk free. Bloom Institute of Technology is also accused of not providing job placement as advertised to prospective students using misleading job placement statistics.
Without an admission or denial, as part of the consent order Bloom Institute of Technology has agreed to pay $64,235 in civil penalties and CEO Austen Allred must pay an additional $100,000 penalty to the Bureau and must be in compliance with the law pertaining to student financing activities.
Business Details
- BBB File Opened:
- 1/8/2021
- Business Started:
- 8/6/1998
- Business Management:
- Mr. Austen Allred, Founder/CEO
- Ms. Molly Graham, Company Contact
- Number of Employees:
- 1
Additional Contact Information
- Principal Contacts
- Mr. Austen Allred, Founder/CEO
- Customer Contacts
- Mr. Austen Allred, Founder/CEO
- Additional Email Addresses
- Primary: Email this Business
- Sales: Email this Business
- Technical Support: Email this Business
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