Tax Preparer Settles RAL Class Actions
H&R Block Inc. announced last Wednesday that it has reached an agreement
with plaintiff class representatives and class counsel that would settle four
state class action lawsuits related to refund anticipation loans (RALs) as well
as potential claims of RAL purchasers in 22 other states and the District of
Columbia. RALs are short term advances that tax preparers can extend to their customers,
who then sign over their official tax refund cheques when they are issued. However,
Block was accused in the class actions of charging "usurious" rates
for this service. The proposed settlement provides for $62.5 million in the settling jurisdictions.
Payments will be made to class members who submit a timely proof of claim for
RALs they had obtained from as early as 1989, in some instances, to 2005. The proposed settlement also requires H&R Block to put in place "industry-leading
disclosure practices" for future refund anticipation loans provided to
its clients. .
|
|
IMPORTANT NOTICE: TAX-NEWS.COM has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments. All materials on this site copyright TAX-NEWS.COM 1999 to 2007. Contact us for further information.