Lawsuit Claims Intuit Charges Excessive TurboTax Rates

By on January 18, 2012

Intuit Inc. is deceptively charging a “quadruple-digit” interest rate to its TurboTax clients who used tax refunds to subsidize the payment for electronic tax preparation services, a class action filed in California federal court alleges.  The lawsuit claims that Intuit does not accurately disclose the fees to customers who choose to defer payment instead of paying for the preparation service up front.

According to the complaint, in one instance, a customer opted to delay payment of the tax preparation services and was charged $29.95 to create a deposit account where the tax return service fee of $86.90 was credited by Intuit. The customer received the tax refund about two weeks after filing the return, at which point Intuit refunded the tax return to the customer minus the $86.90 fee.  In essence, the customer paid $29.95 for an approximate 14-day loan of $86.90, the complaint said.  “The APR, properly calculated in accordance with [the Truth In Lending Act], was an exorbitant quadruple-digit interest rate. Such interest rates also violated California’s usury laws,” the lawsuit claims.

The lawsuit accuses Intuit of unlawful, fraudulent and unfair business practices, as well as violations of California’s usury law, false advertising law and refund anticipation loan laws.

This action was not filed by Milberg.

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