Deadra D. Cummins v H&R Block, Inc.
Consumers Sue H&R Block for Violating Federal Banking Laws
A class action lawsuit has been filed against H&R Block, a national tax preparation company, in the Southern District Court of West Virginia for violations of federal banking laws. Class members seek damages, attorney's fees and costs of the litigation.
Specifically, the lawsuit concerns the plaintiffs' applications for Refund Anticipation Loans (RAL's) which are offered by a national or federal savings bank where an applicant's anticipated tax refund is held for collateral for a consumer loan.
The RAL's that the plaintiffs obtained while at H&R Block locations throughout West Virginia (commonly known as Rapid Refunds by H&R Block) were funded by Beneficial National Bank and Household Bank. Plaintiffs allege that H&R Block violated federal banking laws by failing to disclose to consumers that they had three days in which to rescind their transactions.
The complaint further alleges that H&R Block breached its fiduciary duty to plaintiffs and accepted kickbacks from lending institutions for recommending programs that were not in the best interest of their clients.
