Prehired LLC was a company that operated an online training program claiming to prepare students for entry-level positions as software sales development representatives. Its two affiliates, Prehired Recruiting, LLC and Prehired Accelerator, LLC pursued debt collection against former Prehired students.
In July 2023, the states of Washington, Delaware, California, Oregon, Minnesota, Illinois, South Carolina, North Carolina, Massachusetts, Virginia, and Wisconsin to bring the enforcement action against Prehired, along with the federal Consumer Financial Protection Bureau (CFPB) sued Prehired and its affiliates alleging unfair and deceptive conduct in marketing its program and in originating the Income Share Agreements offered to students to finance the program, and collecting on this debt.
On November 1, 2023, the bankruptcy court approved a Stipulated Judgment proposed by the parties.
To view a copy of the Stipulated Judgment, please visit the Important Documents page of this website or request a copy from the following email address: info@PreHiredClaims.com.
What Happens Next?
The bankruptcy court judgment requires Prehired to cancel all outstanding amounts on all Income Share Agreements issued to Prehired members, which Prehired valued at nearly $27 million. All remaining balances on these loans, are permanently voided and cannot be sold or collected on by Prehired or anyone else.
The judgment also finds that consumers who made a payment on their Prehired ISA are entitled to a refund. It allows an unsecured claim in favor of the CFPB and the states in the bankruptcy proceeding against the Prehired debtors, for restitution to former Prehired members who signed an ISA and made a payment under it.
The Prehired bankruptcy estate may not have enough assets to issue refunds to consumers. If so, consumers who paid money on a Prehired ISA will not get refunds through the bankruptcy proceeding.
Despite this, the states and the CFPB plan to continue to work together to try to refund as many eligible consumers as possible after the bankruptcy proceeding is over. If the Prehired bankruptcy estate does not have enough money to refund harmed consumers, the bankruptcy court judgment may make former Prehired members who (1) signed an ISA and (2) made payments under the ISA eligible to get those payments back from the CFPB's general penalty fund. For this to happen, the CFPB fund administrator must first approve it. If it is approved, then the administrator would make an allocation from the fund. The CFPB is expected to make this determination by May 2024. In that case, after the allocation, the CFPB would begin the process of issuing payments to qualified ISA borrowers. If the allocation is made, payments may be issued in or about the fall of 2024.
For Questions About How the CFPB Fund Operates:
If you have questions about how the CFPB fund operates, the CFPB maintains links for frequently asked questions here:
Important! If you believe that you are qualified for a payment because you signed an ISA and made a payment, please send an email to info@PreHiredClaims.com to verify that we have your information.