SAINT PAUL — After months of unexplained delays, the Consumer Financial Protection Bureau (CFPB) has finally begun distributing long-overdue restitution to Minnesotans defrauded by Prehired LLC, following intense pressure from Minnesota Attorney General Keith Ellison and a bipartisan coalition of state attorneys general.
The payments stem from a 2023 court order that required Prehired, an unlicensed online tech sales training program, to cancel debts and provide $4.2 million in refunds to approximately 660 consumers nationwide. Nearly $80,000 of that amount was earmarked for affected consumers in Minnesota. The CFPB initially pledged to distribute the funds in May 2024, but abruptly stopped providing updates in February 2025, leaving defrauded individuals in limbo.
The silence coincided with a Trump Administration directive reportedly telling CFPB employees not to report to work or perform their duties. The refund process resumed only after AG Ellison and attorneys general from 12 other states sent a May 6 letter to acting CFPB director Russell Vought, demanding accountability and action.
“It Shouldn’t Take Public Pressure”
“When Prehired scammed people just trying to get an education and better afford their lives, I took them to court with the CFPB in 2023 and won refunds for Minnesota consumers,” said AG Ellison. “It is unacceptable that Donald Trump illegally tried to shut down the CFPB and that the agency was not sending refund checks to defrauded Minnesotans. While I’m glad what’s left of the CFPB responded to pressure and released the refunds, it should not take public pressure for Trump’s federal government to simply do its job.”
Ellison’s office continues to track how many individuals have received refunds so far.
“Prehired deceived student borrowers with false promises of lucrative employment and pursued them with aggressive collection tactics when they could not repay these illegal loans,” Illinois Attorney General Raoul said. “I am pleased that victims will finally be receiving the financial relief they deserve, and I will continue working to hold bad actors accountable to borrowers.”
A Pattern of Deception
Prehired marketed its training program with promises of high-paying tech sales jobs, charging up to $30,000 and offering income-share loans that were presented as no-risk: students were told they would only have to repay the loans if they landed jobs earning $60,000 or more.
In reality, many students never secured such employment but were still forced to pay. Prehired pursued aggressive collections through lawsuits and arbitration, often leaving students financially devastated.
Attorney General Ellison joined forces with attorneys general from California, Colorado, Delaware, Illinois, Massachusetts, New York, North Carolina, Ohio, Oregon, South Carolina, and Washington to push the federal agency to act. Their coordinated enforcement action with the CFPB resulted in the court order that Prehired repay millions to victims.
Minnesota consumers who believe they were affected by Prehired or similar predatory practices are encouraged to contact the Minnesota Attorney General’s Office or visit www.ag.state.mn.us for information about their rights.
