Checks finally began hitting mailboxes this week for borrowers duped by the student lender Prehired, as Attorney General Kwame Raoul announced the disbursement of $4.2 million toward restitution. Following a coalition effort to hold Prehired accountable, victims of its misleading tech sales program are starting to see some financial relief,
In 2023, a settlement exceeding $30 million was reached after allegations that Prehired took part in illegal, deceptive, and abusive lending practices, targeting students in Illinois and beyond, according to the Office of the Illinois Attorney General. It was a hard-fought win, necessitating a push to ensure the Consumer Financial Protection Bureau (CFPB) followed through on its obligations to fairly compensate the affected parties. Raoul and his fellow attorneys general had to assertively request information regarding delays, a process that proved fruitful, despite the CFPB ceasing updates since February of this year.
Victims of Prehired, once enticed by promises of six-figure salaries and guaranteed employment after completing a 12-week online sales training program, were instead saddled with oppressive debt. They were burdened by loans with terms obscured, pushing grads to pay even without securing the alluded job, and with a company quick to pursue if payments fell short.
As per a statement by Raoul, "Prehired deceived student borrowers with false promises of lucrative employment and pursued them with aggressive collection tactics when they could not repay these illegal loans." The 2023 lawsuit saw a multi-state cohort rally against the Delaware-based entity, culminating in a ban from offering income-share loans and the voiding of millions in outstanding loans. Joining Illinois in the effort for accountability and transparency were a troop of states, from Colorado to Washington, all with vested interests in justice for their residents.
