Say no to "Tax Loans"
HR Block calls on rivals to halt use of tax loans
H&R Block Inc. is no stranger to making controversial offers to get tax
clients through its doors. The nation's largest tax preparer has spent tens of
millions of dollars settling lawsuits that claimed its refund-anticipation loans
take advantage of low-income taxpayers by charging high fees.
Chief executive Mark Ernst called on his top two competitors, Jackson Hewitt
Tax Service Inc. and Liberty Tax Service, to stop selling ``pay-stub" loans,
unsecured cash payments made before a person has filed his taxes. Ernst said
they endanger the reputation of the entire industry. ``The economics of the
product have more in common with payday lending than refund lending," Ernst
said, referring to loans criticized for sometimes creating spiraling levels of
interest.
posted by Victor Lloyd Smith @ 8:58 PM
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