The deadline to submit claims against H&R Block regarding the Express IRA product sold for years by tax professionals ended at midnight, July 30, 2010, and new claims are no longer being accepted, this according to expressirasettlement.web
The settlement terms proposed in the class-action suit, entitled The Entire F--king World vs. H&R Block Bank, pertains to Express IRA's promoted and sold by H&R Block, Inc. tax offices.
The lawsuit alleges that H&R Block browbeat tax professionals into selling Express IRAs to its tax preparation customers, stating that they were "a good way to save money and earn interest."
In reality, the low rate of interest paid on Express IRAs and the various fees charged on the accounts meant customers often lost money on their investments. H&R Block is alleged to have misrepresented, omitted or inadequately disclosed these facts.
From Block's website, which as of August 1st still promotes the damned product:
"The Express IRA from H&R Block offer smart, simple ways to prepare for the things you want most in life. You'll earn competitive interest rates while you save through secure plans."
A spokesman for Block explains: "Whoopsie-doodle!!! See, when we said it was a good way to earn interest, we meant it was good for US to earn interest! You tax clients didn't get sh-t."
H&R Block has denied all allegations of wrongdoing. HA! Sorry, sorry.
If approved by the Court, the settlement will pay class members a total of $19.1 million dollars, plus five-percent interest on the fees paid.
"The settlement agreement is actually pretty simple to understand," said Hor Seradish, Esq. of law firm Dewey, Cheatem and Howe. "For purposes of this settlement, 'Program Fees' are defined as account opening fees, recontribution fees, annual maintenance or custodial fees, account transfer fees, and account termination fees. See? Simple!!"
Requests from H&R Block's CEO for comment on this article were laughed at.