Action class finance household suit

H&R Block has agreed to settle a massive class action suit in Texas for $26 million, which will be shared among approximately 700,000 taxpayers.

The lawsuit alleged that Block engaged in a "clear and serious violation of duty" by not informing clients of kickback fees it received from its lender, Household Finance, with regard to refund anticipation loans sold by Block.

Refund anticipation loans are short-term loans given to taxpayers that will be repaid with the refunds from tax returns prepared by Block. Block receives a fee from Household Finance for each loan sold.