Liberty Tax Serviceabuse/fraud against franchise owner

M Review updated:

I too once owned one of their franchises and I totally agree with all your statements. The amount of miss information spouted by the Area Developers and Liberty Tax Corp is sad. I know of other owners who poured their life savings into the franchise and wound up bankrupt, losing a home, their cars and other assets because of the unscrupulous leadership from Liberty Corp. I have filed a report with the FTC (Federal Trade Commission) and encourage you to do so also. Maybe if more owners file complaints we can get a class action lawsuit started against Liberty Corp. and stop more people from flushing their life savings down the drain with this sham of a company.

Responses

  • Za
    zambonidriver Mar 29, 2009

    I think you're a liar because it is illegal for the company to sign any documents before you've held the UFOC the required period of time and you had to sign a schedule K acknowledging receipt of the UFOC. Liberty is too big a company to play games with the legal requirements. You sound like a disgruntled person who wouldn't do what they told you to do, and now you blame them. Shame on you.

    0 Votes
  • Ba
    Ballz Apr 02, 2009
    This comment was posted by
    a verified customer
    Verified customer

    I think maybe you should have done more research on any franchise venture you decide. That is one of the keys to picking a franchise to begin with is speaking to not only the franchise owners they recommend but others. On the other hand if you don't know how to market a business well you aren't going to succeed no matter how much the company helps you

    -2 Votes
  • Un
    UnhappyZ Aug 12, 2009
    This comment was posted by
    a verified customer
    Verified customer

    UnhappyFranchisee.com is inviting Liberty Tax Service franchisees to share their experiences good or bad and tell whether they're happy with their decisions.
    http://www.unhappyfranchisee.com/are-liberty-tax-service-franchise-owners-happy/

    Zambonidriver: Just because someone's given a UFOC (now FDD) doesn't mean misrepresentations aren't made - especially from Area Developers As for "Liberty is too big a company to play games with the legal requirements." Liberty was just fined millions by CA for deceptive advertising.

    Ballz: "one of the keys to picking a franchise to begin with is speaking to not only the franchise owners they recommend but others." Good point. That's why franchisees should research here, UnhappyFranchisee.com and FranchisePick.com before making a decision.

    1 Votes
  • Wi
    wilco64256 Oct 12, 2009

    For a "sham" company they sure have made quite a few franchise owners a lot of money. Even a really average-performing office can make the owner $20k plus per year if they follow the program and do what they're supposed to.

    1 Votes
  • Co
    Cosmic Zamboni Oct 27, 2009
    This comment was posted by
    a verified customer
    Verified customer

    I just did some research and Liberty Tax Service has never been fined by the state of California for any practices relating to the sale of franchises. What they were fined for was for a franchisee running advertisements that had not been approved by the corporate office that incorrectly identified a refund loan as being a refund. That franchisee's actions cost Liberty $1 million+. I suspect Liberty will terminate that franchisee's franchise because the franchise agreement specifically bars franchisees from running any advertising that was not approved by the corporate office. Then, that franchisee will come here and complain about how horrible Liberty is for running them out of business.

    Typical.

    -1 Votes
  • Mr
    mrwong Dec 23, 2009

    I am a former franchise owner too. I spent thousands to have management consultants and lawyers look at this company before I moved forward. They told me not to do it, but I went ahead anyway. My mistake led me to my family's financial demise.

    Anyway, I contacted many franchise owners before I joined the "liberty family". They didn't tell me anything until I signed the paperwork - when it was too late to find out that this whole concept is a rip off. Liberty area developers will make you project how much you will make in a year, work towards that, and in the process dig yourself a financial grave.

    They even have this stupid formula - if you spend this amount of money of marketing - (an idiot that buys donuts or candy for business owners in your neighborhood, etc. according to their marketing plan)... you should expect to make this much.

    Recession proof my a** - this franchise concept will burn you to the ground - guaranteed!

    1 Votes
  • Mr
    mrwong Dec 23, 2009

    Oh by the way, if you call franchise owners asking them about the franchise... they will not talk as they are scared to get sued. Liberty makes you sign a non-disclosure where if you speak anything bad about the system, they will hunt you down and sue you for every penny.

    0 Votes
  • Lo
    lovingliberty Oct 12, 2010

    I am a current franchisee and I bought the office from my previous employer. Before I purchased the office I had to attend the sales seminar where there were other people looking into purchasing a franchise. There was also a "Meet and Greet" of new franchisee owners that were attending there training. From the very start the training starts. If you had a problem with your franchise, than you did not listen. As most people know, when you do start a business there is a high probability that you will not make money for the first 2 years.
    As far as the marketing plan it is up to you. Every time I delivered the donuts I developed a relationship with the employees of that business. By knowing the people who work in the businesses around your office you becoming part of your community. How is that stupid. Besides H & R Block doesn't deliver them any thing. I guess that is why they laid off so many employees and we continue to grow. Everyone can't be wrong.

    0 Votes
  • Pc
    pconn Nov 03, 2010

    Last year will be my very last year ever using Liberty Tax Service. I went to the Tax Service on Broadway last year and they completely ripped me off. I was never told of the total charges. I am a single parent with one child. I worked 1 job last year and I make close to nothing. They charged me almost $600 to do my taxes. They did not disclose that information to me at all. I had to find out when I got a copy of my taxes. Good thing I looked through it well because I would have never known how sneaky they are.

    I confronted the owner about it. He is a coward he would leave me sitting in the lobby for hours just waiting to talk to him, and try to send one of his workers to fix the problem. When he would talk to me he give me the run around about it saying he would call me back, etc. He never returned any of my calls or even made any attempt to fix the issue. Needless to say I never got any type of explanation as to why they charged me so much or a refund.

    Ive had several friends go there and they are just happy to get the $50 cash but what they dont tell you about that $50 is they charge you for it on your taxes. Dont be fooled ladies and gentlemen this place is run by a professional scam artist. If you dont carefully examine your paperwork too you will be duped.

    0 Votes
  • Li
    Liberty Tax Customer Care Nov 04, 2010
    This comment was posted by
    a verified customer
    Verified customer

    Hi Pconn,
    We appreciate you reaching out to us via complaintsboard.com. Liberty Tax Service makes customer service our priority which is why we offer a satisfaction guarantee. Please email us directly at [email protected] and we'll be happy to investigate your complaint. In your email please include your name, your phone number, and the office location (street, city and state).

    Kind regards,
    Liberty Tax Customer Care

    0 Votes
  • Ne
    neil benny Rappa Mar 26, 2011
    This comment was posted by
    a verified customer
    Verified customer

    My Dear sir, I thought good long term customer care was profitable for both your franchise and myself, I will say what happened, with no imbelishment.
    I am a returning Liberty tax customer . Three weeks before I Had my taxes done by liberty, I was Quoted a price By Bert For 150.
    My tax was the same as the previous year, but about 30 grand less on my gross. So I come in three weeks later about march 21, Now Phylis
    took all my imformation and I told her at this time about Berts 150. Quote, same as Last year. NOW the following day Phylis calls me and says 248.00 I say Talk to bert, Than I go to pick up my taxes 2 days after this call And BERT says 358.00.. This is totally unfair and I wish for a refund and that you talk with these two employees. This way of Bussiness you wil loose future customers .. Please Reply .
    Most Sincerely Neil Benny Rappa

    0 Votes
  • Na
    naye Mar 26, 2011

    I was charged twice by this 399sectional. I spoke with a representative and he said he would refund my money never did. Now I can't get anyone to answer the phone and the worst part is I never received any furniure. I will never recommend anyone to you FRAUD is all I have to say.

    0 Votes
  • As
    AshSilver May 05, 2011

    I'm not a franchisee, but I was a customer of Liberty Tax "Service" this year... I am a unemployed single mother, they gave me the run around when I asked how much it would cost until they had already prepared everything to make you feel as if they already did it so now you have to pay them, and they charged me $544 dollars and that price was supposedly with $50 off... what robbery!!! I feel like a duped sucker, and not only will I forever speak badly of Liberty Tax Service and never do my taxes there again, I will never have my taxes done anywhere because of this experience. Liberty Tax Service uses dishonest business practices. In addition to all this I went to get my tax info to fill out my FAFSA and they did not give me back ANY of my original paperwork, OR anything that says my tax return amount or anything except for a bunch of papers explaining RAL is a loan ( I did NOT get a RAL) and the bill/reciept for $544 dollars. SCAM!

    0 Votes
  • Cl
    Clara Constain May 13, 2011

    I had a trainning with them and I bought the books for $130, I spend many weeks learning the material, took all the exams to be certified as a Tax Preparer.
    I worked during this season for Liberty Tax in Lehigh Acres, FL and they promised to pay 4% of each tax on top of the $8 hourly rate. But they did not pay me because they said that i was not working for the whole season, but they did not call me back because they did not have enough bussines due to the fact that they were charging lots of money for each fill tax.
    I know for fact that this company always do the same thing to most of the people that is learning with them.<
    They need to stop with this unethical practice, and learn how to make people to work for them for free.

    0 Votes
  • Li
    Liberty Tax Service--no way Mar 10, 2012

    Unfortunately, Liberty Tax Service is a scam. It sells air. I know of several franchise owners who have lost their life savings after being duped. John Hewitt from all accounts (if you look at all his trickery, gimmicks and formulas) demonstrates himself to be an egomaniac, driven by what?

    0 Votes
  • Ac
    Acapulco1964 Mar 13, 2012
    This comment was posted by
    a verified customer
    Verified customer

    as a customers we have a bad experience racist paperwork with wrong owner and complete paperwork with wrong #

    0 Votes
  • Ul
    Uli Samer Apr 04, 2012
    This comment was posted by
    a verified customer
    Verified customer

    I had my taxes done by Liberty Taxes here in Poway, CA. I wrote them a check on 03/19/12 for their service. On 03/22/12 they with -drew the amount from my savings account- not once but twice the amount! I never gave them my saving account information. Instead of cashing my check they somehow hacked into my savings account, and practically stolen double the amount I owed them for their service. When I called them I was informed that it was the banks fault, and they did nothing wrong. I went to the bank and when they auditing my account they said that the check was not deposited, but an unauthorized withdrawal was made electronically from my savings account, and that is fraud! The bank advised me to call them again, and asked them to pay me back the amount they twice withdrew from my account. I called them every day for the last nine days and was jerked around. First I was told that the owner was sick, then the office person who manages finances was out of the office, or "we will call you, when you can pick up the check." I never received a call as promised, neither my check. Today I filed a dispute with the bank, if the bank declares it a fraud I will file a police report!

    0 Votes
  • Ww
    WWilliamson Feb 02, 2013
    This comment was posted by
    a verified customer
    Verified customer

    The owner of branch 16212, Mike Reho refuses to compensate employees on time IF at all. He refused to pay my full check, made a total scene in front of an office full of clients, and then tried to accuse me of stealing CIF money before looking in the money bag all before kicking me out in a threatening manner. Still haven't received my check. I know for a fact he has no intention of paying Most staff at any of his locations. I have witnesses to our public, and very unprofessional, disagreement who are willing to make a statement if needed or to help bring an end to his unethical business dealings.

    0 Votes
  • Jo
    Jonathan E Fortman Mar 05, 2013

    Our office is currently investigating Liberty Tax Service Franchises. If you have or have had a Liberty Tax Franchise we would be interested in speaking with you regarding your experience. Please contact us at (314)522-2312 or email us at [email protected]

    Thank you,

    Law Office of Jonathan E. Fortman, LLC

    1 Votes
  • went to get my taxes done its a simple 1040 EZ they charged me 247.00 then a fee to have it direct depostied into my accout oh wich by the way didnt happen got a paper check instead then I didnt get a state refund because they took it for all there fees in addition to the satifaction garente, they stat its not true all they due nothing when your not sastified its a terrible place to get your taxes done I would not recommend them to anyone unless you want to pay fees ontop of fees and get a small refund when there done I could have dont my own taxes on IRS.gov for free which I didnt know about until it was too late so dont use Liberty tax service in Arkansas there not that great

    1 Votes
  • Ki
    KingWillie Nov 19, 2013

    I agree they are a scam, in certain cities they have you sign a disclosure form agrreing not to do anyones taxes outside of liberty tax, I feel that its a scam because, if im only taking the class to learn how to do taxes, how can I be restricted to liberty tax, when there are other tax preparation companies. but my friend in a neighboring city didnt have to sign a form nor did they instructor say anything about a disclosure form being signed later in the course or afterwards.

    0 Votes
  • Mr
    Mrs. Shaver Dec 15, 2013

    We filed our taxes in September 2013( tax extensions ). On December 4, 2013 Our refund was deposited into a Herring Bank account for Liberty Tax. It was rejected ( supposedly)...Called their Bank...got same bogus story.. They say the IRS is not going to re-deposit our due refund ...They don't seem to know WHEN. We will receive it, Could take up to SEVEN WEEKS to get a Paper Check...Y the hell did we Pay these rip-off artist's to Do our Taxes I 'll never know...!!??

    0 Votes
  • Mk
    MkStItCh Dec 16, 2013

    Your taxes were due to be done WELL before Sept 2013. You waited this long so what's wrong with waiting a little longer?

    0 Votes
  • Ja
    janoris hudson Feb 05, 2014
    This comment was posted by
    a verified customer
    Verified customer

    in 2013 i was a waiver so the owners sold the company now i cant seem to get my w 2s evertime i call they say they dont know when i will get them i need them now so i can have my taxes done my adress is 1538 w webb ave burlington nc 28217 janoris hudson

    0 Votes
  • La
    lakeibahatten Feb 12, 2014

    I filed my tax and the tax refund I was told I was geits a sting was a lie Deduct so much on my taxes and still dedudtdidnt take out there fee until I got my refund its a scam never again will i file my taxes here

    0 Votes
  • Jo
    Joan Culver Feb 16, 2014
    This comment was posted by
    a verified customer
    Verified customer

    Do you do background checks on your employees? Can people who have committed a class IV felony work in your business? If an employee is several months behind on child support can they work in your business? If an employee has thousands of dollars owed on judgements can they work in your business?

    0 Votes
  • Ch
    charles bain Apr 25, 2014

    Same thing happened to me and was told it was a loan that is why I received a paper check something needs to be addressed here. CB Tampa Florida

    0 Votes
  • An
    angrycustomer666 Jan 31, 2015

    Liberty tax are crooks I live in Canada .we get child tax credits monthly.after doing my taxes I wasn't receiving my credit liberty tax received my credit and cashed the cheques which were in my name.fraud is all I have to say.the cra was looking into this.I should of known first time there the police were called on a customer and the staff were one of the rudest people I have ever come across.they took it upon themselves to steal my child tax credit.unbelievable how they get away with this.

    0 Votes
  • Co
    Colly55 Feb 02, 2018
    This comment was posted by
    a verified customer
    Verified customer

    Here is a good one. Liberty offices in the Port Huron, Fort Gratiot area are not giving out the $50 cash in a flash this year. They tell customers they are not doing it but instruct tax preparers to put in they gave the $50 cash in a flash to the customer. Liberty Corporate reimburses them for every $50 they give out. Nice scam on the owners part. In addition most returns done this year by low income people getting an earned income credit are being charged $562 to $700. Come March when the higher income earners come in the price will be much lower as they won't pay the exhorbitant prices. They take advantage of low income people that need to take out an advance loan. These people are in a hard place and need money fast so they pay the fees. So sad that the poor are taken so advantage of.

    0 Votes

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