HR Block issues?

[pa1981]

What is the name of your state (only U.S. law)? PA

I filed early with HR Block in February and SPECIFICALLY asked to have the least amount of fees taken out, no RAL, and mentioned that I wanted direct deposit from the IRS and didn't care how much longer it took to get my refund as long as it saved me cash (because she was sure to point out how much looooooonger I'd be waiting). I got my refund in a couple weeks, direct deposited to my bank, and my state refund a month after that, also direct deposited.

My stimulus check didn't get direct deposited. Just got the paper check last week...I had originally assumed that it was just some glitch with the IRS and HR Block, but last night when I looked in the big envelope of papers they gave me in March with with my copy of my return, there are like 3 yellow tear-off sheets that are all basically permission sheets for a RAL. One is permission to check my credit before issuing the Loan, and the others are just asking me to sign off that I understand all the terms of the loan...NONE OF THEM ARE SIGNED BY ME OR MY HUSBAND. The top portions are filled in with our social security numbers and names (in the agents handwriting) and the signiture parts are blank. And these are the yellow carbon portion so the agent had to have filed signiture-less originals. They were not in the paperwork we reviewed in the office with the agent...they were just put in the big green envelope for us to take home and stash away in a filing cabinet.

My credit report has an inquirey from HSBC (the bank that does the RAL) from February, AND I found out it WAS HR Block that direct deposited our return....not the IRS. I may not have even found out if the stimulus had not been issued. (It's not like I check my credit report inquireys that often and the generaql notation on the deposit just said "tax refund")

My question is: Can I now bring these un-signed papers to HR block, have them remove the inquirey (since I should have had to sign permission for that and never EVER would have) and ask them to break down our fees and get refunded for anything that was RAL related?

 

[Farfalla]

One more reason not to use that company.... I tried them once... they told me that i owed anoher $3000 in taxes. So I went home and redid my taxes on Turbo Tax. I got a $3500 refund. I used exactly the same data.

Instead of going to H&R Block, just protest it with the credit organizations. Just write them letters saying that you never authorized the inquiry... that you did not sign anything to allow it. H&R would have to provide them with your signature authorizing the inquiry... it's more trouble to H&R than it's worth.

If you do end up talking to H&R about this, do it all using letters. I doubt that speaking to someone will do much. IT's too easy for it to fall through the cracks.

 

[LdiJ]

One more reason not to use that company.... I tried them once... they told me that i owed anoher $3000 in taxes. So I went home and redid my taxes on Turbo Tax. I got a $3500 refund. I used exactly the same data.

Instead of going to H&R Block, just protest it with the credit organizations. Just write them letters saying that you never authorized the inquiry... that you did not sign anything to allow it. H&R would have to provide them with your signature authorizing the inquiry... it's more trouble to H&R than it's worth.

If you do end up talking to H&R about this, do it all using letters. I doubt that speaking to someone will do much. IT's too easy for it to fall through the cracks.

Whoa....this is not accurate advice. The OP is completely misunderstanding what happened here. See my response. Oh, and by the way, I do not work for H&R Block, I am with an independent firm, so don't misunderstand my response.

 

[LdiJ]

What is the name of your state (only U.S. law)? PA

I filed early with HR Block in February and SPECIFICALLY asked to have the least amount of fees taken out, no RAL, and mentioned that I wanted direct deposit from the IRS and didn't care how much longer it took to get my refund as long as it saved me cash (because she was sure to point out how much looooooonger I'd be waiting). I got my refund in a couple weeks, direct deposited to my bank, and my state refund a month after that, also direct deposited.

My stimulus check didn't get direct deposited. Just got the paper check last week...I had originally assumed that it was just some glitch with the IRS and HR Block, but last night when I looked in the big envelope of papers they gave me in March with with my copy of my return, there are like 3 yellow tear-off sheets that are all basically permission sheets for a RAL. One is permission to check my credit before issuing the Loan, and the others are just asking me to sign off that I understand all the terms of the loan...NONE OF THEM ARE SIGNED BY ME OR MY HUSBAND. The top portions are filled in with our social security numbers and names (in the agents handwriting) and the signiture parts are blank. And these are the yellow carbon portion so the agent had to have filed signiture-less originals. They were not in the paperwork we reviewed in the office with the agent...they were just put in the big green envelope for us to take home and stash away in a filing cabinet.

My credit report has an inquirey from HSBC (the bank that does the RAL) from February, AND I found out it WAS HR Block that direct deposited our return....not the IRS. I may not have even found out if the stimulus had not been issued. (It's not like I check my credit report inquireys that often and the generaql notation on the deposit just said "tax refund")

My question is: Can I now bring these un-signed papers to HR block, have them remove the inquirey (since I should have had to sign permission for that and never EVER would have) and ask them to break down our fees and get refunded for anything that was RAL related?

You are completely misunderstanding what happened here.

Whenever you have your fees withheld from your refund, its a loan. The loan amount is your fees. The IRS itself will not withhold fees from a refund and pay it to your tax preparer, the IRS will only allow the RAL process. The same applies if you use TurboTax and have your fees withheld from your refund. Its still a loan from a bank.

So, what happened was that the IRS direct deposited your refund to HSBC Bank, HSBC bank took out the amount of your fees, and then direct deposited the balance of your refund in your account. Therefore it was a bank transaction/loan and the credit inquiry was valid.

You will find that although your copies of the paperwork are not signed, that the copies retained by H&R Block, WERE signed. (remember how many papers you signed when you did the tax return?).

So, if you don't want banks/credit inquiries involved in your tax return, pay your fees up front and then you will get a direct deposit, directly from the IRS. You will also save money, because you won't have to pay the extra fees associated with the bank loan.

 

[pa1981]

So, if you don't want banks/credit inquiries involved in your tax return, pay your fees up front and then you will get a direct deposit, directly from the IRS. You will also save money, because you won't have to pay the extra fees associated with the bank loan.

What you describe there is EXACTLY what I asked for...I would have gladly paid the fees upfront had I known that alone would make the difference. I guess I know for next year. Thanks for the info!

 

[Snipes5]

There are actually two products available at H&R where tax prep fees can be withheld from the refund. One, the RAL, is a loan.

The other product is NOT a loan in any way, shape or form. It is merely a device through which the refund is deposited (in its own good time by the IRS) with HSBC bank, which withholds the fees, and deposits them to H&R, and then the remaining refund can be, and is direct deposited to the taxpayer's account, AFTER HSBC receives the money from the IRS.

These things should have been explained to you, but if you are like most people who get their taxes done in January and early February, everything you hear in that interview goes in one ear and out the other. Nobody tricked you. The documents you signed indicate in at least three places how your refund and fees are being handled. Next time read them.

If it bothers you that much, go into H&R and ask to see the original papers you signed. They are on file for a minimum of three years.

Of course this begs the question... didn't you notice that your refund amount was not the same as the bottom line on your 1040?

Snipes