Victims of a predatory tech sales program soon will receive $4.2 million in restitution.
The attorneys general of 12 states sent a letter to Consumer Financial Protection Bureau’s (CFPB) acting director on May 6 informing him that a 2023 court order against Prehired LLC resulted in restitution for approximately 660 consumers nationwide. Unexplained delays kept the CFPB from distributing checks.
In 2022, Washington state sued South Carolina-based Prehired, alleging the company used deceptive marketing tactics to lure Washingtonians into paying up to $30,000 for an unlicensed online sales training program. The company claimed the class would guarantee students would get tech sales jobs that pay $60,000 or more.
Most students could not afford the class, and Prehired offered income-share loans that were not represented as loans and demanded monthly payment. Prehired pursued aggressive collection techniques against those who could not pay including filing lawsuits and initiating arbitration proceedings.
Other state attorneys general later joined CFPB in a consumer protection enforcement action against Prehired. A court ordered Prehired return $4.2 million to those who made payments on the company’s loans.
States attorneys general who signed the letter were from Colorado, Delaware, Illinois, Massachusetts, Minnesota, New York, North Carolina, Ohio, Oregon, South Carolina, and Washington. The California Department of Financial Protection and Innovation also signed the letter.