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Generally, yes fines are a fraction of damages; fines are meant to deter, and are paid to a regulator not the damaged party. Payout from a lawsuit is meant to c
by mushufasa 3y ago
Generally, yes fines are a fraction of damages; fines are meant to deter, and are paid to a regulator not the damaged party. Payout from a lawsuit is meant to capture damages, and pay to the damaged party directly.
In this case, the 'stick' is that CFPB is preventing the company from issuing new loans, de facto forcing them to cease operation. (Or I guess charge regular tuition, like a normal school?) That's a pretty big deal.
- SuperNinKenDo 3y agoForcing somebody to cease committing a specific form of fraud is a "big deal"?
- abnercoimbre 3y agoAccording to The Verge [0] "None of this puts BloomTech out of business, by the way — it can keep operating with third-party loans instead." And to make matters even more depressing the CEO just tweeted [1] that it's no biggie for him: > BloomTech continues to focus on its core mission: improving the lives of students and enabling them to fulfill their economic potential. While it’s been frustrating, we’re glad to put this behind us. [0] https://www.theverge.com/2024/4/17/24133577/lambda-school-bloomtech-loan-ban-student-debt https://www.theverge.com/2024/4/17/24133577/lambda-school-bl... [1] https://twitter.com/Austen/status/1780770303406403701 https://twitter.com/Austen/status/1780770303406403701