Overview:
Washington Attorney General Nick Brown is leading a coalition of 12 states in demanding the Consumer Financial Protection Bureau (CFPB) follow through on its promise to distribute $4.2 million in restitution to consumers harmed by the now-defunct tech training company Prehired LLC. Despite a November 2023 court order and a formal allocation from the CFPB's Civil Penalty Fund in May 2024, no checks have been issued to the more than 660 consumers nationwide who are owed compensation. The states are calling on the CFPB to immediately provide a timeline for releasing the long-promised funds, emphasizing that this issue impacts real people who were misled and exploited by Prehired's unlawful business practices.
Washington Attorney General Nick Brown is leading a coalition of states demanding the Consumer Financial Protection Bureau (CFPB) follow through on its promise to distribute $4.2 million in restitution to consumers harmed by the now-defunct tech training company Prehired LLC.
In a letter sent Monday to Acting CFPB Director Russell Vought, Brown, along with attorneys general from 11 other states, called on the federal agency to immediately provide a timeline for releasing the long-promised funds. Despite a November 2023 court order and a formal allocation from the CFPB’s Civil Penalty Fund in May 2024, no checks have been issued to the more than 660 consumers nationwide who are owed compensation.
“The CFPB committed to provide relief to these consumers when it made the allocation from the Civil Penalty Fund,” the states wrote. “During these increasingly difficult economic times, hundreds of Americans look to your leadership to deliver on this commitment.”
Washington has played a leading role in holding Prehired accountable for its unlawful business practices, which targeted Washingtonians and consumers across the country. The state filed a lawsuit in 2022 alleging the company violated multiple state laws, including the Consumer Protection Act, the Private Vocational Schools Act, and the Collection Agency Act. According to the complaint, Prehired operated an unlicensed online sales training program and lured consumers with false promises of high-paying tech jobs.
The company advertised that its students would “land a $60K+ job offer,” a guarantee that proved misleading. Students paid as much as $30,000 for training that, according to the state, lacked accreditation and failed to deliver on employment outcomes. For those unable to pay upfront, Prehired offered income-share agreements, misleadingly marketed as non-loan options. These agreements obligated students to pay back large sums of money regardless of their post-training income level.
When students inevitably struggled to make payments, Prehired employed aggressive tactics to recover money. The company filed lawsuits, initiated arbitration proceedings, and used other high-pressure debt collection methods against former students—even as many earned well below the promised salaries.
Washington’s legal action culminated in a broader effort involving multiple states and the CFPB. In July 2023, attorneys general from 10 states—along with the California Department of Financial Protection and Innovation—joined the CFPB in filing an adversary proceeding against Prehired in bankruptcy court. The coalition alleged violations of federal consumer protection laws, including the Consumer Financial Protection Act, the Truth in Lending Act, and the Fair Debt Collection Practices Act.
On November 20, 2023, the court approved a stipulated judgment requiring Prehired to cease all operations, cancel approximately $27 million in outstanding loan balances, and refund $4.2 million to consumers who had already made payments on those loans. Because Prehired was in bankruptcy and could not issue payments, the CFPB agreed to use its Civil Penalty Fund to distribute the restitution.
By May 2024, the CFPB had finalized the allocation. Throughout the remainder of the year, the states coordinated with the agency to verify eligible victims, confirm addresses, and facilitate the process. However, communication from the CFPB abruptly stopped in February 2025, and a follow-up inquiry from the states sent in March remains unanswered.
“Our offices worked with the CFPB to secure an allocation from the Civil Penalty Fund… yet nearly a year has now passed, and no consumer checks have been issued,” the letter states. “We request that your response include a timeframe in which the CFPB plans to send Civil Penalty Fund checks to Prehired’s victims.”
Attorney General Brown emphasized that this issue impacts real people—not abstract statistics. Many of the affected consumers, including residents of Washington, sought out Prehired’s program in hopes of advancing their careers and improving their financial situations. Instead, they were left with significant debt and few job prospects.
“These are working adults, many juggling families and full-time jobs, who invested in their future through what they believed was a legitimate training program,” Brown said in a statement. “They were misled, exploited, and are now waiting far too long for justice that was already promised to them.”
The letter also highlights the disproportionate impact of Prehired’s actions on vulnerable groups, including military veterans, who were specifically targeted in the company’s advertising. The states argue that the continued delay undermines the integrity of federal consumer protection mechanisms and leaves hundreds of victims in financial limbo.
Joining Washington in signing the letter are attorneys general from Colorado, Delaware, Illinois, Massachusetts, Minnesota, New York, North Carolina, Ohio, Oregon, and South Carolina, along with the California Department of Financial Protection and Innovation.