The California Attorney General has settled a lawsuit against H&R Block over a widely-used loan program that gives the nation’s largest tax preparer a part of customers’ tax refunds. Attorney General Jerry Brown says the $4.85 million settlement will stop H&R Block from offering high-cost loans it has marketed as early tax refunds. Former AG Bill Lockyer sued the company in 2006, adding California to a long list of other states that sued over H&R Block’s “refund anticipation loans.” The company says it arranges the cash advances for customers so they won’t have to wait an extra one to four weeks for a check from the federal government. In return, customers give a percentage of their tax refunds to H&R Block and its banking partner.
While H&R Block did not acknowledge any wrongdoing, the company agreed to pay up to $2.45 million in restitution for consumers who purchased a “Refund Anticipation Loan” or a “Refund Anticipation Check” through H&R Block between January 1, 2001 and December 31, 2008. The company also will pay $500,000 in penalties and $1.9 million in fees and costs. The settlement also bars H&R Block from marketing the loans and other products in a deceptive manner.
Source: Associated Press
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.