H&R Blocked

So far, we’ve spent a lot of space on this blog talking about attorneys whom we don’t like. As a change of pace, this bit of news caught my eye today and reminded me that attorneys can also do amazing things with the law.

I’ve kept up with the news on tax preparation companies who prey on folks who don’t feel comfortable doing their own taxes but can’t afford a personal CPA. They, like the payday lending outfits on every street corner in rough parts of town, have exploited low-income people for years.

And they do make money. They actually make enough money that H&R Block could miscalculate its own state taxes by $32 million since 2004. Whoops.

So where’s the good-attorney news? New York Attorney General Eliot Spitzer just filed a $250 million lawsuit against H&R Block for a product that “encouraged consumers to put income-tax refund money into individual retirement accounts where low interest rates and high fees meant these customers were ‘virtually guaranteed to lose money.’ For the lion's share of the customers, many of whom are low-income, the fees far exceeded the interest they earned, considering the interest rates were often as low as 1% or less for the accounts.” See the article on The Motley Fool for more details.

Spitzer’s not the only Attorney General fighting against H&R Block’s abuse of low-income folks. California Attorney General Bill Lockyer filed a lawsuit last month, accusing the company of “overcharging thousands of poor customers on loans to tide them over until they get tax refunds.”

Yes, I know an Attorney General--of a state or of the nation--is supposed to use the law to protect the legal interests of citizens, but they don’t all live up to that expectation. Surely I have some reason to be a bit cynical.

So, cheers to Spitzer and Lockyer and the other attorneys who are fighting for the exploited many. We law students need all the inspiration we can get as exam time approaches…

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PS. Washington in the springtime: A cherry tree blooms　桜が咲く