- A bipartisan coalition of 11 AGs, in conjunction with the CFPB, reached a settlement with the bankruptcy trustee for Prehired, LLC and affiliated entities (collectively, “Prehired”) to resolve allegations that the company violated the Consumer Financial Protection Act of 2010 and the Fair Debt Collection Practices Act through deceptive marketing and debt collection practices.
- As we previously reported, the complaint alleged that Prehired deceived consumers into purchasing its pricey vocational training programs by claiming its loans were not loans and hiding important loan terms from borrowers. The company also allegedly utilized deceptive debt collection practices and brought legal actions against consumers in jurisdictions far from their homes.
- The settlement requires Prehired to refund $4.2 million to student borrowers and cancel nearly $27 million in outstanding loans. The order also bans Prehired from offering income share loans in the future or to engage in activities related to vocational education, although it has already filed for Chapter 7 bankruptcy and ceased operations.