CONSUMER NEWS    RECALLS    COMPLAINT FORM    SCAM ALERTS  


Complain about a product or service

Small Claims Guide | Class Actions | Lemon Law | FAQ | Resources | Newsletters | Spanish
Automotive    Education    Electronics    Family    Finance    Health    Homeowners    Shopping    Travel   
NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

H&R Block Settles "Refund Anticipation" Suits



December 16, 2002
It may have seemed like a good idea at the time but the "refund anticipation" loan program is providing to be quite taxing for H&R Block Inc.

The tax preparation giant recently settled two class action lawsuits -- in New York City and Texas -- at an estimated cost of $45 million and other cases are pending in Maryland, New York, Illinois and Alabama.

On December 12, the company settled a lawsuit with the New York City Department of Consumer Affairs and in November it settled a similar case in Texas. The suits claim that Block received undisclosed fees in connection with the loans, which basically provide taxpayers with an immediate payment on their anticipated refund. When the refund is actually paid, the money goes to Block to pay off the loan.

In the New York City case, the city claimed that Block did not adequately differentiate between its "Rapid Refund" electronic-filing service and the refund anticipation loans. Block denied the allegation.

The company agreed to develop an educational campaign to help taxpayers understand the Earned Income Credit, which provides a tax credit to low-income working families. The company will also offer $35 rebate coupons to about 62,000 clients who would have qualified for the credit but were instead issued refund anticipation loans. The coupons can be used to help pay for future tax preparation.

In the Texas case, the company agreed to issue packages of five $20 rebate coupons to customers who took out the anticipated refund loans without being fully advised of the fees involved. The clients will also be eligible for coupons for tax software and a tax planning books.

The estimated cost of the program to the company was estimated at about $42 million. The company agreed to settle after the judge hearing the case said he was prepared to order Block to repay $75 million to consumers.


Consumer News

July 25 2008

Recent Recalls & Safety Alerts

Print, mail, etc.




FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F

Sign up now!


Consumer News & Alerts
Every Sunday

Sign up now!


Knowledge is free.
Knowledge is power.

Back to the top |

Advertisement


Home | Rogues Gallery | Good Guys | Complaint Form | News | Recalls | Search | Video | FAQ |
Consumer Resources | Small Claims Guide | Lemon Law | Newsletter | Contact Us
Advertise With Us | Testimonials | Newsroom | RSS Feeds | Radio | Job Postings




Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2008 ConsumerAffairs.com Inc.  All Rights Reserved.