California Attorney General Challenges H&R Block’s Loan Program(February 15, 2006)
February 15, 2006
California Attorney General Challenges H&R Block’s Loan Program (February 15, 2006)
A California Attorney General Bill Lockyer filed suit against H&R Block Inc. to prevent it from offering its “refund anticipation loan” program in California. Under the program, the company provides cash advances to customers so the customers will not have to wait an extra one to four weeks for a tax refund check from the federal government. In return for the loans, customers must agree to give a percentage of their tax refunds to H&R Block. Lockyer alleges that the company misleads its customers about the costs of the short-term loans, and has not adequately informed loan recipients of the possile penalties or interest of these loans, including the possible consequences if the amount refunded by the federal government is less than anticipated.