Editing H&R Block (section)

==== Refund anticipation loans 2006 ====
California Attorney General [[Bill Lockyer]] sued H&R Block in February 2006, alleging the company's [[refund anticipation loan]] (RAL) business violated state and federal laws in its marketing and providing of high-cost RALs mainly to low-income clients. The lawsuit also alleged Block received a "substantial portion of the loan fees", in some cases purchasing up to 49.9 percent of the loans, and further alleged that H&R Block at times held onto a customer's tax refund for purposes of paying off RAL-related debt from previous years, including that claimed by other banks or tax preparers.  The complaint stated, "Therefore, Block clients who are claimed to owe debt from a prior year are led to expect a loan, but instead find themselves in a collection proceeding."<ref>[https://oag.ca.gov/news/press-releases/attorney-general-lockyer-files-lawsuit-against-hr-block-illegally-marketing-and "Attorney General Lockyer Files Lawsuit Against H&R Block for Illegally Marketing and Selling High-Cost Loans as 'Instant' Tax Refunds"], Press release from the Office of California Attorney General, Feb. 15, 2006.</ref>

The company responded that it "believes the refund lending program is both fair and legal, and will vigorously defend against the complaint". On January 2, 2009, California Attorney General [[Edmund G. Brown Jr.]] reached a $4.85 million settlement with H&R Block, which prohibits the company from deceptively marketing high-cost refund anticipation loans as early "[[tax refund]]s". The company set aside $2.45 million in restitution for customers if they purchased a "refund anticipation loan" or a "[[refund anticipation check]]" through H&R Block between January 1, 2001 and December 31, 2008. In addition, H&R Block agreed to pay $500,000 in penalties and $1.9 million in fees and costs.<ref>{{cite news|author=Jerry LaMartina |url=http://www.bizjournals.com/sacramento/stories/2006/02/13/daily27.html |title=AG sues H&R Block over refund-anticipation loans |work=Sacramento Business Journal |date= 2006-02-15|access-date=2011-11-14}}</ref><ref>{{cite press release |url=http://ag.ca.gov/newsalerts/release.php?id=1645& |title=Attorney General Brown Reaches Agreement with H&R Block Prohibiting Deceptive Marketing of Tax Refund Loans |publisher=Office of the Attorney General, State of California Department of Justice |date=2009-01-02 |access-date=2011-11-14}}</ref> In 2011, H&R Block ceased offering RALs altogether, a move praised by consumer rights activists.<ref>{{cite press release |url=http://www.consumerfed.org/pdfs/pr_AdvocatesApplaudBlockDroppingRALs_%2091411_FINAL.pdf|title=Consumer Advocates Applaud H&R Block Decision to Forego RALs and Urge Republic, Jackson Hewitt and Liberty to Stop Making High Cost Loans |publisher=Consumer Federation of America|date= 2011-09-14}}</ref>