H&R Block Settles Loan Suit

by Mario Lozano on December 1, 2002 · 5 comments

in Kickbacks

KANSAS CITY, MO — H&R Block said Tuesday that it will settle a class action lawsuit filed in Texas that accused it of taking kickbacks from banks over “refund anticipation loans” made to customers from 1992 to 1996. The company said the settlement could potentially cost H&R Block $262 million.

As part of the settlement, which still must be approved by Judge J. Manuel Banales of Kleberg County, Block agreed to provide the customers with five $20 coupons that can be used for tax preparation and planning services over the next five years. Customers will also receive coupons for tax software and a tax-planning book.

(via The Associated Press)

{ 5 comments }

1 Gene Rucker March 20, 2004 at 7:40 pm

H & R Block charged my wife $285. for completing her tax return after quoting her $75.00.When she went to pick up the return they would not release it until the $285. was paid.

2 Cynthia Michaud February 27, 2005 at 6:31 pm

H & R Block filed my taxes on Feb. 7th, 2005 in Nashville, TN. I was charged $141.00 to have Mr.Ernest Hill e-file and was told my refund of $1,200 would be direct deposited into my checking account by Feb. 22. I check my bank account online and no deposit. I went to the IRS.org website and it said my refund had been direct deposited Feb. 18th. I waited a few days and called my bank and they had no knowledge of it. I rechecked my H&R client copy I had and the account numbers were not correctly written from the check I had given Block. So I contact Block and they say there is nothing they can do and offer no apologize whatsoever. I tell them they sould be the ones to take care of the problem with the IRS, but they just say “they won’t talk to us”. So I have a check just floating around out there somewhere and the IRS has been notified of the problem and is waiting for the check to return to them from the bank. I told H&R that I would not ever use them again(for 10 yrs. I have been), and they just tell me ok, whatever you want. Whoever continues to use these people needs to watch them closely for mistakes. Check your routing & account numbers if you direct deposit your refund. Last year I caught another gentleman filing my tax online making a typo error and had to call his attention to it. So again I say…BEWARE

3 Yvonne April 21, 2005 at 2:48 pm

On February 2, 2005, I had my taxes prepared at H&R Block. On March 2, 2005, they called me stating the “Refund Anticipated Loan cashier’s check” was ready. On March 4, 2005, I went to pickup my tax forms and check for $1,342.05 only to find out the check and tax forms had been given out in their words “inadvertently to the wrong client” and it was “under investigation.” That supposed “wrong client” never returned and, unfortunately, twelve (12) days later on March 16, 2005, the check was cashed. Because of this, I have become a victim of identity theft and fraud and to make matters worse, I am being told that if I do not sign a “Stop Payment/Indemnification” form (for a check that already has been cashed), the check will not be reissued and the bank that issued the check has not responded to my letters requesting only a copy of the cancelled check. This has been a nightmare in progress. Customers please beware.

4 MARLENA ELLIS April 23, 2005 at 1:29 pm

IN 1999 H&R BLOCK FILED MY TAXES FOR A RETURN OF ABOUT 70 THOUSAND ON A SETTLEMENT I HAD RECIEVED FOR EMOTIONAL DISTRESS IN A SEXUAL HARRASEMENT SUIT. IN 2002 THE IRS WANTS THERE MONEY BACK, I APPEALED WITH NO RESULTS AND I AM STILL FIGHTING. NO ANSWERS FROM H&R BLOCK

5 LILLIE H BENSON August 13, 2005 at 4:33 pm

I LILIE H BENSON FILE WITH LAWFIRMD IN THE YEAR OF 2001

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