The Delaware Department of Justice’s Consumer Protection Unit is investigating Prehired and its CEO, Joshua Jordan.
The investigation began in March, after Prehired filed nearly 300 debt collection lawsuits in the Delaware court to enforce its revenue-sharing agreements.
According to the Consumer Protech Unit, Prehired began filing lawsuits a month after forming two Delaware LLCs, including the plaintiff in the debt collection actions.
Pewhired offers a technology sales bootcamp that touts the ability of those who complete the course to land software sales jobs with salaries starting at $69,000 per year.
Prehired is based in North Charleston, SC.
Instead of paying for sales training, graduates agree to donate part of their salary to Prehired as part of a “membership,” according to the company’s website. The company describes itself as a “club of members”.
Prehired voluntarily dismissed collection cases after the state’s Consumer Protection Unit expressed concerns in a March 8 letter, noting that virtually all of the defendants resided outside Delaware and had no convenient means to defend themselves in lawsuits.
A few days later, Prehired began filing the same cases again on the online arbitration platform Ejudicate – even though the students never agreed to shelter. The Consumer Protection Unit acted to end what it considered illegal arbitrations.
A message has been sent to Prehired requesting comment.
“A company cannot unilaterally decide to arbitrate against hundreds of consumers after being caught abusing our legal system,” Attorney General Kathy Jennings said. “My office is committed to ending illegal debt collection practices and ensuring that consumers, especially students, have the opportunity to defend themselves against excessive creditors.”
In addition to investigating Prehired’s litigation and collection activities, the Consumer Protection Unit also reviews Prehired’s marketing and sales practices, including its employment and salary information, and representations made to students signing Prehired Revenue Sharing Agreements.
Anyone with information about Prehired or Joshua Jordan should contact the DOJ Consumer Protection Unit at (800) 220 5424 Where firstname.lastname@example.org. A complaint can be filed with de.gov/consumercomplaint.