an equal and opposite reaction
Case Details for "H&R Block "
H&R Block to refund up to $19.4 million in fees to customers
New York Attorney General Andrew Cuomo said Monday that H&R Block (HRB) will refund up to $19.4 million in fees to customers as part of a settlement that resolves a lawsuit over its Express IRA product.
In a statement, Cuomo said the tax preparation services company will refund between $11.4 million and $19.4 million in fees to customers nationwide depending on the number of claims.
H&R Block also has agreed to pay $750,000 in fines, fees and costs to resolve the attorney general's lawsuit, Cuomo said. The company will convert all existing Express IRA accounts into a successor IRA program that doesn't charge fees, Cuomo said.
Eligible H&R Block customers will be contacted by a court-appointed administrator, Cuomo said. H&R Block also has separately agreed to settle a number of class-action lawsuits in U.S. District Court in Kansas City.
In its lawsuit, the attorney general's office had alleged that H&R Block failed to adequate disclose fees on the Express IRA product and that interest paid would not cover the fees in certain instances.
Cuomo's office had alleged that more than 600,000 Express IRA accounts were opened by H&R Block since 2000, with the company claiming the accounts paid 'great rates' and were 'a better way to save.' The attorney general's office alleged that 85% of customers who opened accounts paid more in fees than they earned in interest.
Hundreds of thousands of H&R Block customers closed their accounts and incurred additional undisclosed fees, Cuomo said.
Posted on:2010-01-04
Company: H&R Block
Class:
Scope: Nationwide
Type of Case: Consumer
Settlement Administrator:
Contact Us Regarding This Settlement:
