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

NC House Democrats Stand United Against SB 153

SB 153 is a right-wing bill that would burden local law enforcement, infringe on the rights of local governments, and further empower ICE to perform unconstitutional raids on North Carolina communities. 

Redadas de ICE en Charlotte y Concord: Intensificación de Arrestos de Inmigrantes en Carolina del Norte

En una reunión celebrada el 21 de mayo en la sede de ICE en Washington, el principal asesor del presidente Trump, Stephen Miller, y la secretaría de Seguridad Nacional, Kristi Noem, instruyeron a los oficiales de inmigración a aumentar los arrestos diarios a 3,000, triplicando la cifra alcanzada en los primeros meses del mandato de Trump. Este objetivo forma parte de un esfuerzo por ejecutar la operación de deportación más grande en la historia de Estados Unidos. 

Trump’s FEMA Denies North Carolina’s Hurricane Helene Aid Request, Again

“FEMA’s denial of our appeal will cost North Carolina taxpayers potentially hundreds of millions of dollars to clean up out west,” Stein explained. “The money we have to pay toward debris removal will mean less money toward supporting our small businesses, rebuilding downtown infrastructure, repairing our water and sewer systems, and other critical needs.”

3 Million People Could Lose SNAP Under GOP Plan, Gov. Stein Warns of NC Fallout

“If Congress goes forward with these plans, our state will be forced into perilous budget decisions – should North Carolinians lose access to food, or should we get rid of other essential services?” Gov. Stein wrote. “I urge our members of Congress to reject this budget proposal so that North Carolina families don’t go hungry.”