H&R Block has settled with the New York Attorney General over alleged excessive fees it charged investors it steered to its Express IRA. The tax preparer will refund between $11.4 million and $19.4 million to customers and pay $750,000 in fines and fees.
“H&R Block’s aggressive peddling of fee-laden retirement accounts that were virtually guaranteed to lose money needlessly cost families across our country millions of their hard-earned dollars,” said New York Attorney General Andrew Cuomo. “This settlement will provide a measure of relief in these difficult times.”
The A.G. said the interest that 85% of the Express IRAs paid didn’t cover the fees charged and that H&R Block opened more than 600,000 Express IRA accounts since 2000, advertising them as paying “great rates” and being a “better way to save.” In addition, investors who closed their Express IRA accounts were charged an exit fee that was not disclosed at the outset.