Press Release

Attorney General Ellison secures relief for students victimized by predatory for-profit educational provider

Prehired will void all outstanding income-share agreements, refund harmed borrowers, and permanently cease operations; Settlement secures $31 million in relief nationwide, including debt relief and $80K in refunds for Minnesota consumers

November 20, 2023 (SAINT PAUL) – Today, Minnesota Attorney General Keith Ellison, the Consumer Financial Protection Bureau (CFPB), and a bipartisan coalition of 10 other state attorneys general announced an approved settlement and more than $30 million in relief to student borrowers to remedy 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. The order approved by a federal court  requires Prehired to cease all operations and void all outstanding income-share loans, valued by Prehired at nearly $27 million. The order also provides for $4.2 million in refunded payments nationwide, with Minnesota consumers receiving $79,577.08 in restitution.

“Scamming folks who are just trying to get an education, get a job, and afford their lives is as low as it gets, and that’s exactly what Prehired did,” said Attorney General Ellison. “Prehired lied when they promised good-paying jobs for their graduates, and Prehired lied when they promised not to collect on loans until those job placements happened. Today, we’re making Prehired repay consumers they ripped off, cancel outstanding loans, and permanently close their doors. Let this be a lesson to any other scammers even thinking about doing anything like this.”

Prehired was a Delaware-based company that operated a 12-week online training program claiming to prepare students for entry-level positions as software sales development representatives with “six-figure salaries” and a “job guarantee.” Prehired offered students “income-share” loans to help finance the costs of the program.  These credit products are not marketed as student loans, but in effect create a very costly debt for many students by requiring them to pay a significant share of their income after they complete or discontinue the program. Today’s order  also names two affiliated companies, Prehired Recruiting and Prehired Accelerator, that pursued collection on defaulted income-share loans.

In July 2023, Attorney General Ellison joined a bipartisan coalition of 11 states and the CFPB in suing Prehired  to void the illegal loans and facilitate consumer redress. The states and the CFPB alleged that Prehired:

Enforcement Action

Under the Consumer Financial Protection Act (CFPA), the CFPB, state attorneys general, and state regulators have the authority to take enforcement action against institutions that violate federal consumer financial laws, including the CFPA’s prohibition of deceptive acts or practices and the Fair Debt Collection Practices Act.

Under the order approved by the court , Prehired will:

Joining Attorney General Ellison and the Consumer Financial Protection Bureau in suing Prehired were the bipartisan attorneys general of California, Delaware, Illinois, Massachusetts, North Carolina, Oregon, South Carolina, Virginia, Washington, and Wisconsin.

Former Prehired students are encouraged to visit  to update their contact information and verify their payment information to ensure they receive compensation from this settlement.

Attorney General Ellison urges Minnesota consumers to report their concerns with educational entities or other consumer complaints by submitting a complaint online  or by calling the Attorney General’s Office at (651) 296-3353 (Metro), (800) 657-3787 (Greater Minnesota), or (800) 627-3529 (Minnesota Relay).