Training platform Prehired will pay $30 million to student borrowers for allegations that included making false promises, trapping students with loans that violated the law, and directing debt collectors to borrowers who could not pay.

The Consumer Financial Protection Bureau (CFPB) worked with Washington, Delaware, California, Oregon, Minnesota, Illinois, South Carolina, North Carolina, Massachusetts, Virginia, and Wisconsin on the action, the agency said on Monday. The stricture was rubber-stamped by a federal court and mandates that Prehired ceases operations in addition to paying $4.2 million as a remedy to those affected by its “illegal practices and voids all of its outstanding income share loans, valued by Prehired at nearly $27 million,” CFPB said.

“Prehired lured student borrowers into debt with false promises of job placements and claims that students wouldn’t have to pay until they got a job,” Rohit Chopra, CFPB Director, said in a statement. “Today’s action with our state partners ensures that borrowers harmed by Prehired can receive redress and have their illegal loans canceled.”

A CFPB spokesperson told Newsweek that Prehired created over a thousand income share loans, referring to agreements where students borrow to pay for education and pay back the debt from a share of their earnings. Prehired Recruiting, an affiliated entity that was also named in Monday’s order, sought to collect $25,000 from each consumer, for a total of over $7.2 million, the spokesperson pointed out.

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