The struggle for those swindled by Prehired LLC's deceptive tech sales program seems to be reaching a turning point as the Consumer Financial Protection Bureau (CFPB) begins to issue checks to the victims. This development follows a push from state attorneys general, who have been voicing the frustrations of the program's participants caught in a financial maelstrom. In a joint letter to the CFPB's acting director, Attorney General Nick Brown and 11 other state attorneys general demanded action, prompting the federal agency to finally begin to disburse the $4.2 million that has been long awaited by some 660 consumers across various states.
While the restitution was ordained back in 2023, it has taken until now for the CFPB to act upon the court's decree. A statement released in May 2024 noted the allocation plans, but successive delays led to a standstill, with the CFPB ceasing to provide updates by February 2025. It was only after the attorneys general decided to publicly to pressure the agency that the CFPB confirmed the restitution process was back on track. According to a release from the Washington State Attorney General's Office, the exact number of individuals who have received their checks is still being assessed.
Back in 2022, Washington was the first to sue the South Carolina-based Prehired for its unlawful and aggressive practices, which included demanding monthly payments from students who did not see the promised job placements or incomes. This legal pursuit soon joined forces with other state attorneys general and the CFPB, leading to a joint consumer protection enforcement action. "I appreciate the CFPB finally releasing restitution to victims," Attorney General Brown stated. "After waiting years for justice to be done, I hope this development helps people move on from this awful experience."
Prehired's scheme involved charging up to $30,000 for an unlicensed online sales training program and offering income-share loans that were misleadingly marketed as not being actual loans. Despite these methods of deceit, the company guaranteed its students lucrative tech sales jobs that rarely materialized. When the students found themselves unable to pay the heavy debt, the company resolutely pursued aggressive collection techniques. This troubled history has led to the current restitution efforts, which reflect a collusion of state powers, including Colorado, Delaware, Illinois, Massachusetts, Minnesota, New York, North Carolina, Ohio, Oregon, South Carolina, and the California Department of Financial Protection and Innovation. Together, they have strived to hold Prehired accountable and offer some solace to those affected.
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