Intuit class action overview:
- Who: Plaintiff Zachary Bostick sued Intuit Inc. and its subsidiaries.
- Why: Bostick claims the companies violated the Military Lending Act by charging excessive fees on TurboTax refund advance loans.
- Where: The Intuit class action lawsuit was filed in California federal court.
A new class action lawsuit accuses Intuit and its subsidiaries of violating the Military Lending Act by charging excessive fees on TurboTax refund advance loans.
Plaintiff Zachary Bostick’s class action lawsuit alleges Intuit and its subsidiaries — Intuit TT Offerings Inc., CK Progress Inc. d/b/a Credit Karma, MVB Bank Inc., First Century Bank N.A., Santa Barbara Tax Products Group LLC and Green Dot Bank — charged excessive fees on TurboTax refund advance loans.
Bostick argues the companies also unlawfully required borrowers to waive their rights to seek relief in court as a condition of obtaining TurboTax refund advance loans.
“Defendants’ practices described herein are standardized and uniformly applied to all consumers who apply for and receive Refund Advance Loans,” the Intuit class action lawsuit says.
Bostick wants to represent a nationwide class of covered borrowers who obtained a TurboTax refund advance loan within the applicable limitations period and were required to authorize routing of their federal tax refund through a temporary deposit account, which was used for repayment of the loan and deduction of fees.
TurboTax refund advance loans ‘charge excessive fees’
Bostick argues TurboTax refund advance loans are marketed as a short-term, refund-based consumer loan that allows taxpayers to receive a portion of their anticipated federal tax refund shortly after filing.
The plaintiff claims TurboTax refund advance loans are inseparable from a mandatory refund-processing and account structure that enables Intuit and its partners to impose fees incident to the extension of credit.
Bostick argues that while the loans are advertised as carrying “0% interest,” the Military Lending Act requires calculation of the Military Annual Percentage Rate, which he claims includes not only stated interest but also fees and charges imposed directly or indirectly as a condition of the extension of credit.
“Refund Advance Loans are repaid through direct routing and interception of the borrower’s federal tax refund,” the Intuit class action lawsuit says.
Bostick claims Intuit and its subsidiaries are guilty of unlawful security interest/account access, excessive interest and fees and waiver of rights.
In other news, student loan holders allege the U.S. Department of Education inaccurately reports balances when loans are transferred to a new servicer, causing financial harm to borrowers.
Have you obtained a TurboTax refund advance loan? Let us know in the comments.
Bostick is represented by Victor J. Sandoval and David S. Almeida of Almeida Law Group LLC and Brandon M. Wise and Domenica M. Russo of Peiffer Wolf Carr Kane Conway & Wise LLP.
The Intuit class action lawsuit is Bostick v. Intuit Inc., et al., Case No. 3:26-cv-01444, in the U.S. District Court for the Southern District of California.
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