H&R Block Inc. is set to refund as much as $19.4 million in fees to customers who purchased a program from individual retirement accounts. The reason for the return is that it charged more in fees than it paid in interest according to the NY Attorney General, Andrew Cuomo who announced the settlement on Monday.
Block will return $11.4 million and $19.4 million to its customers; the number reliant on the volume of claims made under the settlement. An administrator appointed by the court will contract individuals entitled to refunds.
Beyond providing the estimated 30,000 customers who bought an Express IRA since 2000 with full refunds for fees, H&R Block is required to pay $750,000 in fines and fees to the state of New York.
Additionally, H&R Block has been ordered to convert present Express IRA accounts into a newly developed IRA that does not exact fees. Block has also agreed to atone by being more straightforward and detailed in its disclosures of fees and terms.
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