H&R Block's Refund Anticipation Loan Card Eats Your Refund
Poor Sam didn't take our advice. He let H&R Block do his taxes and then took out a refund anticipation loan. The money, which was deposited on an H&R Block Emerald Card, is now tied up by several inexplicable holds for transactions he didn't make. The companies supposedly holding the funds have no clue who Sam is, or why they'd be holding his money. H&R Block's only response is to charge Sam $2 whenever he calls their customer service line for help.
Sam writes:
Please help me! I made the mistake of having my taxes done at H&R Block this year, and further made the even bigger mistake of getting a Refund Anticipation Loan on their Emerald Card.The woman who did my taxes initially made several mistakes on my taxes, including my home address. Somehow H&R Block has, after repeated phone calls, been unable to even change my address to the correct one.
Currently, most of the money I have left on my "Emerald Card" is being held in my pending transactions. This is mostly for purchases that were denied - due to lack of funds - because I was unaware they were holding large sums of money for a company I have NEVER made a purchase from!!! Upon contacting H&R Block, they tell me I must contact the companies who are supposedly holding the money. Unfortunately, none of these companies - there are four - were able to help me. Why? They aren't holding anything!
Calling the 866 number provided on the back of the card proves useless. I have been hung up on (and still charged two dollars PER CALL) three times; I have been told that the customer rep in one case "didn't know what the problem was" and asked me to call back in an hour. One gentleman was actually able to help me and reverse about forty dollars worth of charges. Another lady later explained to me that he was able to do this because they were "duplicate charges". Which does not in any way explain why:
She claimed that company was holding the money. This is in fact one of the companies that has said they cannot do anything because they are not withholding anything.
- 1. one of the charges he reversed was in fact the only charge from the company anywhere on my statement. and
- 2. why three exactly identical charges from another company entirely cannot be reversed.
At this point, I am frustrated and angry and ready to just walk away from my money. H&R Block has completely failed me at every opportunity with their customer service.
A hint of irony in all of this - my roommate also has an H&R Block Emerald Card. She went to a different location then I did to have her taxes done originally... and she has had no problems whatsoever with her card. None. Even though she has shopped at all the same retailers I have.
Yeesh, there's no easy way to clear up this mess. The mystery hold may eventually dissolve, but unless H&R Block is willing to act, there's really very little you can do.
This is one of the many reasons we call refund anticipation loans the worst tax product ever. Stay away from them!
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Comments:
Request a check be mailed after the holds are lifted. If they won't report to AG and FTC.
Whats funny is that I do the Customer Service for this Card. Just let me know if you need any help or info about the card.
I just never take any gift or prepaid card option for anything. I don't feel comfortable having money entitled to me not under my own control - in my own bank account. I don't care if it takes days on end to transfer or if you have to mail me a check, I'll wait!
Whats funny is that a do the Customer Service for this card. If you need help or any info, just let me know.
OH, and it would be free.
@Damon J DiCenzo: I just finished and filed yesterday w/ TurboTax and the program hung 8-10 times (2 system restarts) through the process. They were mostly times when it was communicating with their servers.
I was disappointed.
My refund got deposited in my account in under two weeks. What need would a person have for a refund anticipation loan unless they wanted to get screwed?
Yeah, we had our return within 10 day (state and fed), so considering this as where the bar is set I have little to no idea why you would need what essentially a bridge loan to carry you ten days.
If that's the case maybe you should have prepared you taxes 10 days earlier.
If nothing else perhaps the OP will learn a lesson the hard way.
Some people are just like that. They want their money now. You can ask a simiar question about payday advance outlets too.
I know it, they have already waited a year since their last refund, now they need it 8 days early?
Look in this day of every penny counts Why do we give banks, stores, free float of our money. Letting them dole it out in installments and charge fees of use of is insane. Just say no to this gimmick. Keep you money in a interest bearing checking acct. No more freebees to banks abs stores.
@KyleOrton: my family has used turbo tax for the past 5 years. We haven't had any major problems to date.
The only proble we did have... was earlier this year when they started accepting returns and the servers got overloaded and they stopped letting people login.
Other then that it's been fine.
I think an EECB is in order. Keep it polite, professional, and concise. Carefully document all that has happened, and off you go. Also might help if you can get something in writing from the companies that claim not to be holding your money. You can then scan those letters, and send them as attachments along with your EECB. Good luck, and next time around, avoid H&R Block like the plague.
I used H&R block online and opted to get my IRS check in the mail (I want to use it to open a new checking account). My forms were accepted by the IRS within 24 hours, and I got my check 3 weeks later. Of course, now that the filing deadline is closer, it would take longer. Next year, file as early as possible and you won't have to wait as long for your refund, so you can avoid the loan option.
Doing your taxes at H&R block is no different than eating at a fast food place everyday. Stop being so lazy and either do them yourself or have a much more skilled person do them for you.
H&R Block is the lazy way of doing your taxes and if I was H&R Block I would screw you also. You are probably not paying attention to what is going on anyway so you deserve to lose the money.
@Damon J DiCenzo: Tried that and it got screwy on me. Bought TaxCut and it cut my refund in half from what it should be (wouldn't accept my mortgage interest as a deductible.. wtf). Went to www.taxslayer.com and it was pure awesome. Taxes were done in about an hour with what I calculated my refund to be.
@Jesse: I remember when they first began really pimping the "Anticipation!!1" loans, it was in the late 80's, pre-intarwebs, and electronic filing was no nearer reality than were flying cars. Refund checks were made of paper and delivered by "mail-men", and if you got it in under 5 weeks you considered yourself blessed. 6-8 weeks was the rule.
But in these whiz-bang days of "high tech" (did I spell that right?), a shrub would be hard-pressed to adequately rationalize this horrible financial instrument. Maybe if I had gambling debts and had been driven to H&R by leg-breakers, but really, no.
You know what would be funny? If someone who does Customer Service for the Card were reading this. Ah, but even if they were, they probably wouldn't speak up.
@aerick:
aerick, you seem very eager to get access to Sam's information. I hope you are on the up and up about offering to help, but Sam or any others taking you up on your offer should still vet you carefully before divulging any personal information.
moral of the story, don't get a loan and put it on a debit card. get a check and deposit it into your bank account.
Sheesh. You can always do your taxes for free using TAXACT online. I did mine, and a coworkers, all for nothing. Never used HR Block. They are just another one of those scumsucking middlemen who proclaim they provide a much needed service.
Refund Anticipation Loan. What a joke. If you cant wait for a mere 2 weeks for your money to be deposited, then you deserve for the money to have holds. This will teach you to have some PATIENCE, and keep the money from burning a hole in your pocket. I bet Sam is of the type who counts all eggs before they hatch, and also is the type credit card companies just love.
In Massachusetts Citizens Bank has a sign posted that if you have a refund check from H & R Block and you are not a bank customers, they will charge you $10.00 to cash the check. Tell me those are not shilark fees.
two weeks would be way to long in my situation. My car was going to get reposesed if I didnt get my money the next day to go pay $4OOO on the car. Yea the other $4000 was spent in a week on random crap but, I needed a car to go get those things.@JediJohn82:
I stopped using H&R Block for my taxes about 3 years ago and haven't missed them a single bit. Up until then I had been a regular customer more than 10 years.
The reason for the sudden switch: I walked in one year and initiated a tax preperation session when all of a sudden the forms for binding arbitration were slapped down on the table and it was explained to me that before they could conduct business with me I had to sign the papers.
Well that was a no brainer for me. Not only have I found a company here that seems to actually know the tax preperation business better than someone your typical H&R "data entry drone", and not only do they charge reasonable prices (another H&R complaint altogether), but above all they don't insist on stripping all of my rights as an individual and customer away. Best switch I ever made.
Can't he go back to the actual HR block office that screwed it up? Make the woman who filed the wrong info fix it and refund all the money he's spent trying to clean up her mess. Just sit in their waiting area and tell any new customers walking in the door why he's there...that would probably get some free, effective customer service.
@SteelersAreGo: Not sure what "blame the OP" means to be honest. I think that if you deal with a "snake oil salesman" and believe he can help you, well that is your problem.
@LegoMan322: It means it's not the victim's fault if they get raped/killed/robbed. Mistakes in reading or understanding interest rates are one thing. Outright theft, which the OP was subject to, is another.
@SteelersAreGo: Understood, but I think people should use their brains and think about what is happening. You are walking into a place that will have your taxes done in a half hour. That seems way to fast for me for there to be NO mistakes and nothing in fine print that will end up screwing me.
I just think that people need to understand why they are put into situations. A great example is the over weight person suing McDonalds and claiming that they are fat because of McDonalds. This story to me is very similar to the fat person suing McDonalds and I do not feel bad for them.
Sam is the perfect H&R customer....for them of course
He should have told them to e-file his taxes and have his refund direct-deposited into his bank account to have his money within 10 days
@verucalise: I've enjoyed TurboTax before, but this year's version was miserable. I really regret picking it up, and I don't see it happening again. Will look into Taxslayer, thanks for the tip.
I got an actual tax accountant for mine this year. I had several major life changes: new job, new house, moving, school, etc. It was worth every penny of the $125 fee.
And I can call him whenever I like, just in case the stimulus package changed anything (it didn't) or if I remember something I forgot (I did).
This would have been nice BEFORE getting charged $2.00 several times, just to be placed on hold and have my calls dropped after 20 minutes of waiting. Charged each time and never even spoke to anyone. I had over $900. on hold on my account to unknown sources and had to wait TWO MONTHS to get it back.....in the mean time, YOU weren't willing to pay the late fee on my rent!!!! I have gone to H&R Block for 10 years, and this year was the last one.
@bdsakx:
Amen. And this promotes the Refund -> Retailer mentality, rather than Refund -> Savings Account.
(Not that I'm perfect, but I at least have a motivation to keep some in savings because that's where the IRS puts it).
@LegoMan322: This is nothing like blaming McDonalds for getting you fat and you know it. that analogy is wrong and your attitude is disgusting for several reasons. First, becoming fat is a gradual process - you don't eat McDonalds for a year with no increase in fat then have that final hamburger break the camel's back.
Second, becoming fat is the logical consequence of eating lots of fast food. Being stolen from is not the logical consequence of trusting a major tax preparer.
Third, there is no true measurable loss from being fat. A guy who sues McDonalds for making him fat claims the loss of intangible things. Here, there is a definite amount of money that has been lost through no direct action by the victim.
Fourth, what the hell is wrong with you, a guy is being stolen from and your response is that he shouldn't have trusted a tax preparer with thousands of employees in the first place. Next time you get screwed by an airline, just remember, it's your fault for trusting them, jerk.
Whats funny is that I do the Customer Service for the Card. Just let me know if there is anything i can help you out, for free