H&R Block owns the tax preparation software company that will channel financial products to tax filers in locations through the United States this year.

RedGear Technologies, based out of Utah, is a subsidiary of H&R Block. Block acquired RedGear a few years ago. RedGear’s primary product is TaxWorks, a tax software package designed to help preparers by offering (more…)

H&R Block confirmed that it will not offer refund anticipation loans during the 2012 tax season. Block did not have RALs last year.

New Block CEO Bill Cobb attributed the preparers willingness to go into the season without RALs to (more…)

First, the OCC has clarified that the June 8th guidance from the OCC (“Deposit-Related Consumer Credit Products“) is intended only for debit cards attached to a traditional deposit account.

Prepaid is not covered by this guidance. Still, a person at the OCC intimated that a similar guidance is forthcoming for prepaid debit cards. (more…)

H&R Block filed a lawsuit (8-K here) in the Eastern District of Missouri this morning against HSBC that would force the US subsidiary of the British bank to honor their refund anticipation loan agreement.

H&R Block’s Katie O’Neill Rauber told reporters that HSBC is citing the IRS’ decision to cease to offer the debt indicator as grounds for nullifying their 2005 contract to provide funding for refund anticipation loans.

With the loss of the debt indicator, banks face more risk with RALs. Block had indicated that it has a plan for underwriting these loans. Nonetheless, the risk is much higher than in the recent past. Perhaps the risk is too much for HSBC. It is also possible that the loss of the (more…)

I had a productive trip to Kansas City on Thursday.

H&R Block’s annual shareholder’s meeting was held in the theater of the Kansas City Repertory Theater. There was a table set up in the lobby. I signed in. I was the third visitor. The letters “H.K” had been scrawled in the previous entry.

From the start, the leadership at H&R Block was extremely gracious. The General Counsel met to go over some basic ground rules for the meeting. He explained the agenda and directed me to a seat near a microphone. A few minutes later, Alan Bennett introduced himself.

As soon as I sat down, a man in a blue embroidered polyester vest and matching pants turned around. He raised his eyebrows. The message was: I’m with you here. (more…)