H&R Block Express IRA Fraud
New York State Attorney General Eliot Spitzer has recently filed a lawsuit against the nation's largest tax preparation company, H&R Block Inc, alleging violation of New York's consumer fraud law and a breach of fiduciary duty to their clients. The lawsuit concerns retirement savings plans offered by H&R Block called "Express IRAs", that were allegedly fraudulently marketed by H&R Block.
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Express IRA Hidden Fees
According to the complaint filed by the New York State Attorney General's Office, these Express IRAs caused hundreds of thousands of low-income clients to lose money due to the Express IRAs having low interest rates coupled with numerous hidden fees. The complaint alleges that H&R Block marketed the Express IRA to approximately 500,000 of its customers without fully disclosing the fees on the account. The sum of the account fees, which included a setup fee, recontribution fee, and annual maintenance fee, were very often greater than the amount of interest actually earned by the account, causing customers to lose money. Approximately 150,000 clients closed their Express IRA accounts with H&R Block, incurring additional fees and tax penalties. As a result of the high fees, approximately 85% of the customers who participated in the Express IRA lost money. The complaint further alleges that 99% of the customers who opened accounts in 2002 with the minimum contribution of $300, lost money because of the combination of a low interest rate and high fees. The H&R Block lawsuit filed by the New York Attorney General is seeking $250 million in fines along with additional damages, and an injunction against further violations.
Consultation with Consumer Fraud Lawyer
If you have invested in an H&R Block Express IRA and suffered financial loss, you should consult a consumer fraud attorney. If you would like to discuss your rights, are interested in more information on consumer fraud lawsuits, or if you have information about a possible H&R Block Express IRA lawsuit that you would like to share with us, please fill out the short evaluation form below and a member of Seeger Weiss LLP's experienced staff will call you to discuss your potential rights. Attorney consultations incur no obligation on your part and all initial consultations are free of charge and do not create an attorney-client relationship. Seeger Weiss LLP has office locations in both New York and New Jersey and its attorneys practice in courts throughout the country.
Link To Lawyer Seek's H&R Block Fraud Content:
<a href='http://www.lawyerseek.com/Practice/Consumer-Protection-C21/HR-Block-Fraud-P120/'>H&R Block Fraud: Lawyer Seek</a> |
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