HSBC Watch News Release Forum Index
Forum Name: - HSBC Tax Loans
Topic Title: Tax Loans and Who Gets The Money and Profits
Sun Jan 22, 2006 11:01 am
"They are extremely expensive loans, they are for very short periods of time and it's an unnecessary expense that drains lots of money out of the pockets of the working poor," said Jean Ann Fox, director of consumer protection for the Consumer Federation of America. They are also a big profit center for H&R Block and other tax preparation companies. Even though preparers aren't allowed to make the loans themselves, most have deals with the lenders to get a cut of the money. In H&R Block's case, the tax preparer gets nearly half the profits earned from every short-term loan made at one of its offices
Consumers are warned to look at the fine print on the H&R Block television commercials. If you have Tivo, pause live TV to read it carefully. The notice says (paraphrased) that some or all of your tax refund can be taken to pay other debts. You may be left with little or none of your money.
Sat Feb 25, 2006 8:31 am
Shares of H&R Block Inc. sank yesterday after the largest U.S. tax preparer disclosed problems with its own taxes and said it will restate profit going back to 2004.
H&R Block also said the costs of settling class-action lawsuits and slack business in its tax and mortgage arms caused its quarterly profit to drop 68 per cent from a year ago.
The company will restate profit for the 2004 and 2005 financial years and the first two quarters of its current year to correct errors it said caused an understatement of its income tax liability last year by $32-million (U.S.).
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