NC AG Josh Stein Wins Case Against Loan Company That ‘Trapped Students With Illegal Loans’

Source: WITN

State Attorney General Josh Stein announced days before Thanksgiving that he had won a court order against Prehired, a student loan company, that will give 22 North Carolinians justice – and debt relief, WITN reported.

As part of the order, Prehired will be shut down permanently and is also on the hook for paying more than $4.2 million in restitution to student borrowers harmed by their practices. They will also need to void almost $27 million in all outstanding loans.

Stein, along with a bipartisan group of 10 state attorneys general and the federal government, brought the case against Prehired to court, saying the company “made false promises about job placements, trapped students with illegal loans, and used abusive debt collection practices on borrowers,” according to WITN.

In North Carolina, 22 people made student loan payments to Prehired totaling $112,716.63, or about $5,123.48 per person. In total, North Carolinians may receive an estimated $1.1 million in contract cancellations.

“We will not allow predatory lenders to rob North Carolinians of their money and damage their futures,” said Stein. “I’m pleased that this order wins relief for students who were harmed and shuts down the company.”

According to Stein, Prehired operated a 12-week online training program that claimed to prepare students to get guaranteed jobs as entry-level software sales development representatives with six-figure salaries.

The lawsuit also states that Prehired offered “income share loans,” which require students to pay back the loans as a percentage of their income after graduating.

Stein sued Prehired in June, claiming that the company was breaking consumer financial laws by saying its loans weren’t actually loans, not informing borrowers about important parts of the loan agreement, using deceptive tactics to push borrowers into debt, and suing students in jurisdictions that were far from where they lived to make it harder for them to show up in court to dispute the cases.

According to Stein’s office, Prehired has already ceased operations and filed for bankruptcy, but will now be required to close for good.

Students who may be eligible can submit a claim by clicking here.

Share:

More Posts

Cómo la Casa Blanca ignoró la orden de un juez para dar vuelta los vuelos de deportación

La administración Trump dijo que ignoró una orden judicial para dar vuelta dos aviones con supuestos miembros de pandillas venezolanas porque los vuelos estaban sobre aguas internacionales. La decisión de la administración de desafiar la orden de un juez federal es extremadamente rara y altamente controvertida. “La orden judicial fue desobedecida. El primero de muchos, como he estado advirtiendo, y el comienzo de una verdadera crisis constitucional”, escribió el abogado de seguridad nacional Mark S. Zaid, crítico de Trump, en X, añadiendo que Trump podría ser finalmente destituido. La Casa Blanca da la bienvenida a esa lucha. “Esto llegará a la Corte Suprema. Y vamos a ganar”, dijo un alto funcionario de la Casa Blanca a Axios.

House Democrats try to move North Carolina’s minimum wage closer to a living wage

Democrats in the North Carolina legislature are attempting to raise the state’s minimum wage which has not been increased in over 15 years. Representatives Allison Dahl (D-District 11), Aisha Dew (D-District 111), Bryan Cohn (D-District 32), and Marcia Morey (D-District 30) filed House Bill 353, titled the “Fair Minimum Wage Act”, would not just raise the minimum wage once but continue to raise it as time goes on. 

“Dooming a lot of us to early deaths”: North Carolinians Fear Republicans’ Proposed Medicaid Cuts

About 3 million North Carolina residents — one in four —  receive health coverage through Medicaid, a figure that includes the more than 640,000 people who received coverage through the state’s Medicaid expansion program starting in Dec. 2023. Under state law, North Carolina’s Medicaid expansion program would end should federal funding for the program drop below 90%, cutting off access to the 640,000 North Carolinians who’ve gotten coverage under the expansion.