Block: In Talks to Settle with HSBC

H&R Block says that it has entered into talks with HSBC USA to smooth over their impasse on their contested tax settlement contract.

Block didn’t offer details and they didn’t submit a filing to the Securities and Exchange Commission. The latter would only be necessary if there was news that had a “material, definitive” impact on the company’s financials.

Block and HSBC amended their tax settlement products (refund anticipation loans and refund anticipation checks) in the spring of 2010. Block makes about forty percent of refund loans every year. With news that other tax preparers were struggling to secure funding, Block seemed poised to have a competitive advantage of sorts.

This may be information masquerading as news. The parties have a hearing next Monday. Time is running out. Block can’t wait until December 15th to get a RAL agreement in place. They have to have prices from HSBC. They have to develop software. They need to train staff on the new means for a RAL application in the post-debt indicator marketplace.