H&R Block to Settle Suit Over Loan Program

H&R Block Inc. has tentatively agreed to settle a class-action lawsuit over its tax-refund loans for $360 million.

The nation’s largest tax preparer and its banking partner, HSBC Taxpayer Financial Services Inc., were accused of gouging customers by providing “refund anticipation loans” at interest rates frequently exceeding 100 percent.

The proposed settlement with plaintiffs’ attorneys was filed Monday at the U.S. District Court for the Northern District of Illinois. It would cover more than 28 million customers and more than 55 million transactions, the company said in a news release.

The settlement — for $110 million cash and $250 million in coupons — would go to class members who provide a “timely proof of claim.” The coupons, worth $6 each, could be used for various H&R Block tax-preparation services over the next three years, the company said.

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