this post was submitted on 19 Apr 2024
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This is the best summary I could come up with:
The US Consumer Financial Protection Bureau (CFPB) has slapped coding boot camp BloomTech with several punishments for alleged deceptive business practices.
The business, which claims on its site it will help students land their "dream job" in tech at companies like Amazon, Cisco, and Google, accepted the consent order without admitting or denying any wrongdoing.
BloomTech, formerly Lambda School, has operated since 2017 and offers six- to nine-month vocational programs in science and engineering, with a focus on computer technology.
"BloomTech and its CEO sought to drive students toward income share loans that were marketed as risk-free, but in fact carried significant finance charges and many of the same risks as other credit products," said Rohit Chopra, director of the CFPB.
On top of that, the CFPB claimed BloomTech broke the Holder Rule by neglecting to afford students certain rights when it sold loans to investors, which is illegal according to the consumer protection watchdog.
"We decided to settle the matter because it was clear that ongoing litigation would be extremely time consuming, incredibly expensive, and distract us from our core mission," the CEO said.
The original article contains 726 words, the summary contains 185 words. Saved 75%. I'm a bot and I'm open source!
What’s an income share loan?
It's a contract.
They give you some money now, and, instead of an interest rate and a term for repayment, they get a percentage of your future income for some period of time.
Particularly shitty ones continue even if you repay the original loan amount.
It looks like they didn't even get the money, these were "student loans" so the money just went to pay for the tuition.