Household HSBC Watch

Under tax refund anticipation loan programs, customers who owed a tax refund could receive most of the money in two to three business days by paying a fee to file the return electronically and a loan processing fee. Critics assert the loans victimize low-income households, immigrants and financially unsophisticated taxpayers who weren’t adequately informed about the high interest rates.

“Plaintiffs believed the license fee should have been disclosed,” An H&R Block spokeswoman Linda McDougall said. “The company and the bank did not disclose it because it did not affect the cost of the loan or the cost of the tax-preparation service.”
The fee was disclosed beginning in 1997 and was discontinued in 2003, she said.

“This is another stain on HSBC’s reputation baused by predatory lender Household International” said advocacy organization Household - HSBC Watch.