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Attorney General Jason Miyares announced that student lender Prehired will be required to provide over $30 million in relief to student borrowers for making false promises of job placement, trapping students with “income share” loans that are against the law, and abusive collection practices.
The order was approved by a federal court and requires the company to cease operations, pay $4.2 million in redress to affected customers, and void all income share loans totaled at $27 million.
Prehired was based in Delaware and operated a 12-week online training program which claimed to prepare students for entry-level software sales roles with “six figure salaries” and a “job guarantee.”
The company also offered students income share loans to finance the costs of the program.
The Consumer Financial Protection Bureau and 10 additional states joined Miyares in the lawsuit in July earlier this year.
The lawsuit alleges borrowers were deceived by claiming its loans were not loans, kept borrowers in the dark about key information, tricked students with deceptive debt collection practices, and sued students in locations far away where they could not be present when they executed the financing contract.
Prehired students affected by this action can submit a claim through a link available here.