The CFPB is permanently banning BloomTech from consumer lending activities and its CEO, Austen Allred, from student lending for a period of ten years.
Allred founded BloomTech, which rebranded from the Lambda School in 2022 after cutting half its staff, in 2017.
(According to the CFPB, BloomTech originated “at least” 11,000 such loans.)
BloomTech didn’t market the loans as such, saying that they didn’t create debt and were “risk free,” and advertised a 71%-86% job placement rate.
And, unbeknownst to many students, BloomTech was selling a portion of its loans to investors while depriving recipients of rights they should’ve had under a federal protection known as the Holder Rule.
In India, a government-run agency will now monitor and undertake fact-checking for government related matters on social media even as tech giants expressed grave concerns about it last year.
The Ministry of Electronics and IT on Wednesday wrote in a gazette notification that it is cementing into law its proposal from last year about making the fact checking unit of Press Information Bureau the dedicated arbiter of truth for New Delhi matters.
The Ministry of Information and Broadcast established the fact checking unit of Press Information Bureau in 2019 with the aim to dispel misinformation about government matters.
The unit, however, has been criticized for falsely labelling information critical to the government as misleading.
Relying on a government agency such as the Press Information Bureau as the sole source to fact-check government business without giving it a clear definition or providing clear checks and balances “may lead to misuse during implementation of the law, which will profoundly infringe on press freedom,” Asia Internet Coalition, an industry group that represents Meta, Amazon, Google and Apple cautioned last year.
Credit bureaus relying on outdated third-party data are only getting a small piece of the puzzle, Georgina Merhom says.
User-permissioned data sources, that consumers provide with their permission, come from a variety of places.
In addition, user-permissioned data sources replace the self-reporting process, brokers trust between the institution and consumer and identifies opportunities that the bank would have otherwise overlooked, Merhom said.
Building a better credit bureau or finding new ways to verify data from people without a lot of credit is not a new concept.
“It costs banks $29 billion a year to process applications, and that’s not even including the money they pay credit bureaus,” Merhom said.
The FCC, responsible for telecommunications and internet regulations, is establishing a new bureau dedicated to space regulation by voting in favor of its creation. The FCC’s bureaus specialize in various…
