Liberty Tax penalized $1.16M in case over its advertising

Jul 02, 2009 3 Replies

"A California court imposed $1.16 million of civil penalties on Liberty Tax Service, saying Liberty engaged in deceptive practices when promoting its refund anticipation loans to tax-return filers." [Source:

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The article also includes, "California Attorney General Edmund G. Brown Jr., who filed the suit against Liberty, reached a similar settlement with H&R Block. Block, the nation's largest preparer of tax returns, agreed in January to pay as much as $2.45 million in restitution to customers who used its refund anticipation loans. It also agreed to pay $500,000 in penalties and $1.9 million in fees and costs.



"As part of a $5 million settlement in 2007, Jackson Hewitt Tax Service agreed to refund $4 million to customers who used its refund anticipation loans. In their settlements, Block and Jackson Hewitt denied allegations of any wrongdoing."


"Bill Brown" wrote

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Man. If I didn't do it, I'd find it hard to fork over millions of dollars.

I would find it hard to fork over millions even if I had done it. Those RALs should be illegal in the first place. It suckers in people who only think of the refund they are getting regardless of the haircut the RAL purveyors are trimming from the refund. It also promotes EIC fraud.

A good place to start would be to remove the Debt Indicator field from the IRS Ack mssage.

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