Prehired Ordered to Pay $30M to Student Borrowers and Cease Operations

The training platform faces allegations of making false promises and trapping students with illegal loans, leading to a federal court-approved action by the CFPB and 11 states.

• Prehired, a training platform, has been ordered to pay $30 million to student borrowers for allegations including making false promises, trapping students with illegal loans, and directing debt collectors to borrowers who could not pay.
• The Consumer Financial Protection Bureau (CFPB) and 11 states worked together on the action against Prehired, which was approved by a federal court.
• The order mandates that Prehired ceases operations and pays $4.2 million as a remedy to those affected by its 'illegal practices' and cancels all of its outstanding income share loans, valued at nearly $27 million.
• Prehired is also permanently banned from offering income share loans in the future, or any activities related to vocational education.
• The company has already filed for Chapter 7 bankruptcy and ceased operations, and under the terms of this order it will stay shut down for good.

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