South Carolina Attorney General Alan Wilson announced that the Consumer Financial Protection Bureau (CFPB) will finally distribute restitution to victims of a deceptive tech sales program. This decision comes after pressure from South Carolina and 11 other state attorneys general.
In May 2023, a court order against Prehired LLC was issued for illegal practices, resulting in $4.2 million in restitution for approximately 660 consumers nationwide. Despite this, delays by the CFPB kept these funds from reaching the victims.
The CFPB initially announced fund allocation in May 2024, providing updates throughout that year. However, communication stopped in February this year until attorneys general publicly pressured the agency. “I will not stand by when South Carolinians are victimized by deceptive sales tactics,” said Attorney General Wilson. “The wheels of justice turn slowly, but I’m thankful that our letter to the Consumer Financial Protection Bureau helped South Carolina victims start getting the compensation they deserve.”
Prehired used misleading marketing to convince residents to pay up to $30,000 for an unlicensed online training program, offering income-share loans disguised as non-loans. The company promised high-paying jobs but demanded payments even from those earning less and pursued aggressive collection methods against defaulters.
South Carolina collaborated with other states and the CFPB in enforcing consumer protection actions against Prehired, leading to the court-mandated restitution.
Joining South Carolina were Colorado, Delaware, Illinois, Massachusetts, Minnesota, New York, North Carolina, Ohio, Oregon, Washington, and California’s Department of Financial Protection and Innovation.
