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H&R Block / scam practices!

1 3023 Central Avenue Hot Springs, AR 71913Hot Springs, AR, United States Review updated:
Contact information:
Phone: 501-623-1040

I filed my taxes with H&R Block last year and received the RAL loan with a refund of around 2500. So, I assumed I would be approved for the same loan as a returning customer. I only went to H&R Block to receive my money in 1-2 days. They took about 30 minutes or less as my information was already in the computer. The representative should tell you that you may not get the loan, but they don't because they know that is the only reason most of us are even there. I have done my taxes at home for the past 10 years with the exception of last year and only returned for the RAL.

The very next day I called and was told, like many others, I was not approved for the loan. So, therefore, they charged me 256.00 for doing absolutely nothing for me that I could not have done myself.

How can they actually charge fees this high? My return this year was only 914.00, which I will only see approximately 600.00 due to this company ripping me off by leading me to believe I would receive my money in 1-2 days; when you find out in less than 24 hours you have been denied the RAL load, GUESS WHAT -- THERE IS NOTHING YOU CAN DO BESIDES ACCEPT YOUR FATE!

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  • Rg
      8th of Mar, 2008
    0 Votes

    I work for Block. You went in to get a loan with HSBC bank. There are tax preparation fees due to Block; then there are fees due to HSBC bank plus interest for the loan. The tax prep fees have nothing to do with the HSBC bank fees. Block acts as a facilitator, or bank agent, between you and HSBC bank. The fees to Block are for having your tax return done in a timely, professional manner. E-filing to the IRS has no charge; e-filing is free. Block has no control over HSBC bank and whether it approves a loan or does not approve a loan. Your refund is the collateral for the loan. You are borrowing against your refund. If HSBC turns you down for the loan, then your beef is with them, not Block. The bank, by law, has 30 days to notify you why you were denied the loan. You also get a free credit report. When applying for a loan, from whatever source, you run into the possibility that the loan application may not be approved. This is not the fault of the person or the company who helped you apply; the issue lies between you and the bank you applied to for a loan. I hope this explanation helps you.

  • Mi
      2nd of Apr, 2008
    0 Votes

    Most of the complaints I've read have been due to the RALs being denied by HSBC. This is mostly due to a person having an IRS 'Refund Offset'. This is caused by such things as owing back taxes, owing outstanding student loans, or other government guaranteed loans, or owing back child support.

    Neither H&R Block nor HSBC has any way of knowing if this applies to someone until after the return has been filed. Unfortunately, since the return has been prepared, filed and accepted by the IRS, H&R Block CANNOT get it back for you to go home and do it yourself.

    However, the possiblity that this could happen and the reasons for it are spelled out in the multiple page loan application. The tax preparer is NOT going to read this whole thing to you, so if you can't read, then get someone to read it to you. It specifies that if your loan is denied it turns into a RAC, your loan interest fees will not apply and your refund will be released to you as soon as HSBC gets it (8 - 15 days) for whatever amount is sent by the IRS less your other fees.

    If you don't think the fees for the RAC are acceptable for you, then I suggest you don't apply for the RAL and do your return yourself and get the IRS to direct deposit the money directly into your checking account in the first place.

  • Ro
      2nd of Apr, 2008
    0 Votes

    Which is a load cheaper in the long run. Getting the money right away is nice, but it costs about what 400 dollars all told? Not worth it to me, but hey, I am not everyone.

  • Mi
      23rd of Jan, 2009
    0 Votes

    I posted my story a few days ago, and asked for help from others when the same thing happened to me. I got a big responce. Use the link below to get there and see what all they had to say. It sucks!!!;_ylt=Av7vJFV8WEUbrhBtxbWV_lojzKIX;_ylv=3?qid=20090119073348AAP9AYG

  • Up
      28th of Jan, 2009
    0 Votes

    I just fell into this same trap. as a matter of fact h&r has on its web site that it is a bank. The application also says H&R Block Bank. Therefore I see this a consumer fraud and think the regulators should do something about such bad practices. If I had not called I would still be waiting. The taxpreparer even tried to make it sound good by saying, you will only be charged the fees for the 8 to 15 days. Did not H&R get enough with the last class action suit they lost. i wish the Justice system in this country did a better job.

    Upset in Missouri

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