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.
.
Network Tweets Archive
| Resources | Partners
| Site Map | Links
| Newsletter
Archive | Contact
| RSS Feeds
About | Syndication |
Advertising & Marketing |
Recruitment |
Terms & Conditions |
Privacy
Copyright © 2012 - All Rights Reserved - Tax-News.com
All content provided by BSI Media
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.
Write a comment