H&R Block - Class Act

1 decade 2 years 8 months ago Wednesday, April 05 2006 Apr 5, 2006 Wednesday, April 05, 2006 1:06:41 PM CDT April 05, 2006 in News

The claim comes from plaintiffs' lawyers in Illinois, where a class-action lawsuit is scheduled for trial in March. The lawsuit claims Block offered rapid refunds without fully explaining that the payments are actually interest-bearing loans.

Without admitting wrongdoing, Kansas City-based Block last week agreed to pay more than 62 (m) million dollars to settle four similar lawsuits in West Virginia, Ohio, Alabama and Maryland. The agreement would also resolve pending claims in 22 other states.

Plaintiffs' lawyers in the Illinois case say Block has put language in more recent rapid-refund applications to say customers agree to resolve disagreements in arbitration rather than court.

A Block spokeswoman says the company always discussed the arbitration with customers, and that plaintiffs' attorneys are responsible for informing clients about their rights.

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