In July, the CFPB and 11 states filed an adversary complaint in bankruptcy court against Prehired — a company that operated a private, for-profit vocational training program for software sales representatives. Promising entry-level wages of over $100,000, Prehired charged $30,000 for its program and encouraged students to enter into income share loans. The CFPB alleged that Prehired made deceptive representations about these loans, failed to disclose key financing terms, and engaged in unfair debt collection practices.
Yesterday, the Bankruptcy Court entered a stipulated judgment, including a $4.2 million monetary judgment to be distributed to affected consumers, cancelling any outstanding student debts, and requiring all business to cease. The CFPB’s press release, along with a link to the order, is here.