http://ag.ca.gov/newsalerts/release.php?id=1261 From the above California Attorney General press release: "... Further, according to the complaint, H&R Block frequently has steered customers to companies that charge fees to cash RAL checks, with H&R Block getting a kickback on a portion of those fees. H&R Block has failed to adequately disclose these arrangements to consumers, the complaint alleges. H&R Block also participates with banks and other entities in a deceptive debt collection scheme under the banner of its RAL program, the complaint alleges. RAL customers are liable for paying fees and paying back the borrowed money if their anticipated refund does not materialize, for whatever reason. When a customer allegedly owes that debt, H&R Block still will sell them a new RAL when they come to H&R Block in a subsequent year to get their taxes prepared. H&R Block does not adequately tell such customers about any alleged debts, or that when they sign the new RAL application, they agree to automatic debt collection ââ?¬â?? including collection on alleged RAL-related debts from other tax preparers or banks. These applications are denied, and the customerââ?¬â?¢s anticipated refund is used to pay off the debt, plus a fee. ââ?¬Å?Therefore, Block clients who are claimed to owe debt from a prior year are led to expect a loan, but instead find themselves in a collection proceeding,ââ?¬Â the complaint alleges. Additionally, according to the complaint, H&R Block has used and shared customersââ?¬â?¢ tax-return information without clientsââ?¬â?¢ written consent, in violation of state and federal law. H&R Block has illegally shared customersââ?¬â?¢ information, and unlawfully used clientsââ?¬â?¢ tax return information for marketing RALs, home mortgages and other financial products, and to collect debts, the complaint alleges. "
All the more Reason for the FAIR TAX Bill to get passed.. There would No longer Be a need for companys like H&R B or Jackson Hewitt. People waste a fortune having to pay them to figure out the Ridiculus Federal Income Tax Code as it is..And To also possibly hurt peoples credit too. Geezs. I know people come to This site are working to fix their Credit... But PLEASE, If you have not read about the Fair Tax Proposal than by all means Read,learn and Help get it passed. You can get info at FairTax.org..The plan is gaining more and more support daily.. This is the Fair Tax Plan , Not the Flat tax.. Frioguy
"To illustrate how H&R Block�s RAL program targets low-income families, the complaint notes recipients of the federal Earned Income Tax Credit (EITC) comprise 70 percent of the company�s customers for RALs and similar products, even though EITC recipients account for just 17 percent of all taxpayers. " You just can't afford to be poor and ingnorant anymore.
Ontrack. You Hit it right on the nail head.Being Poor & ingnorant is a tough thing to be.. Tell everybody H&R means Hit & Run. I Noticed on a money talks segment on the News that You can go online and Use H&R Block with out having to pay a Fee. Thats for the basic filing.. If people would just have a little patience instead of the Gotta have now mentality they would have more in their pockets..If they would actually pay attention to the Fees H&R charges for the RAL,they just may realize. Hey Thats one months rent.Or Hey I can pay cash for a New TV.... I,m sure that for a Few.Their Eyes will open up and They will stop falling for the schemes that seem to be pushed on the Poor & ingnorant. Sorry to Ramble but the Whole Tax issue Just gets under my skin. frioguy
