CFPB Takes Action Against BloomTech (Formerly Lambda School)


Allred [the CEO] tweeted that the school achieved a 100 percent job-placement rate in one of its cohorts, and later acknowledged in a private message that the sample size was just one student.


They would have been fine if they were more transparent. Sure, getting a job in tech is extremely difficult and it’s an individual’s responsibility to improve their odds. They would have been fine had they pointed out that students do better at their bootcamp rather than by other means.

Still, they had to deceive possible students in terms of its success rates, terms of the loan (which they claim was just income share) and their skin in the game (where they sold the contracts instead of waiting them out).

I wonder if Allred will tweet through this one like he usually does.