Washington Attorney General Nick Brown, alongside leaders from 11 other states, is urging the Consumer Financial Protection Bureau (CFPB) to expedite restitution payments to victims of a deceptive tech sales program. The coalition addressed their concerns in a letter to the CFPB's acting director regarding delays in distributing $4.2 million ordered by a court against Prehired LLC.
The restitution was meant for approximately 660 consumers affected by Prehired's practices. Despite the court order in November 2023 and subsequent allocation announcement by the CFPB in May 2024, the distribution has been stalled without explanation since February this year.
The letter highlights that "Prehired’s victims include consumers from each of our respective states…and nearly every other state in the nation." It further emphasizes the commitment made by the CFPB to provide relief from its Civil Penalty Fund during these challenging economic times.
Washington initially sued Prehired and its founder in 2022 under multiple state laws for misleading marketing strategies that coerced individuals into paying up to $30,000 for unlicensed training programs. These tactics included offering income-share loans misrepresented as non-loans, guaranteeing high-paying jobs, and pursuing aggressive debt collection methods when students defaulted.
This lawsuit led to a collaborative enforcement action with other states and the CFPB, resulting in the court-mandated restitution. The coalition is now seeking clarity on when these funds will reach affected consumers.
Joining Washington are Colorado, Delaware, Illinois, Massachusetts, Minnesota, New York, North Carolina, Ohio, Oregon, South Carolina, and California's Department of Financial Protection and Innovation.
A copy of the letter is available online.