Attorney General Raoul And CFPB Obtain Order Requiring Student Lender Prehired To Provide Students More Than $30 Million In Relief
CHICAGO - Attorney General Kwame Raoul, along with the Consumer Financial Protection Bureau (CFPB) and 11 attorneys general, announced today that student lender Prehired will provide more than $30 million in relief to student borrowers for making false promises of job placement, trapping students with income share loans that violated the law, and resorting to abusive debt collection practices when borrowers could not pay. Raoul and the CFPB’s federal court-approved order requires Prehired to cease all operations, pay $4.2 million in redress to consumers that were affected by its illegal practices, and void all outstanding income share loans, valued by Prehired at nearly $27 million. “Prehired deceived student borrowers with false promises and lies of deferred payment until employment,” Raoul said. “I am proud of my office’s collaboration with the CFPB and a bipartisan group of attorneys general to ensure Prehired is held accountable and that borrowers
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