Case Updates |
03/24/26
By
Timothy D. Brennan
Related Case: Jackson Hewitt / Liberty Tax / TaxAct Military Lending Act Investigation
If you received a tax refund advance loan or certain other tax refund advance products from Jackson Hewitt, Liberty Tax, or TaxAct while on active duty in the military, you may have a legal claim.
Wolf Popper LLP is investigating refund anticipation or “refund advance” loans offered by tax preparation companies, including Jackson Hewitt, Liberty Tax, and TaxAct. These financial products are typically marketed as a way for consumers to access a portion of their expected federal tax refund quickly, sometimes within hours or days of filing their return.
These loans are often promoted as low-cost or “no fee” options. However, the structure of these products may include finance charges, transaction fees, or other costs that are not always clearly disclosed at the time of application. In some cases, funds may be issued on prepaid debit cards or through other methods that can carry additional fees for withdrawals, transfers, or account maintenance.
For active-duty servicemembers, these loans may be subject to the federal Military Lending Act (MLA), which provides important protections against high-cost lending. Among other things, the MLA generally caps the Military Annual Percentage Rate (MAPR) at 36% and prohibits certain loan terms, including mandatory arbitration provisions, waivers of legal rights, and other potentially abusive practices.
Wolf Popper LLP is investigating whether refund advance loans offered by these companies may:
· Include fees or charges that effectively increase the cost of borrowing above the 36% MAPR limit;
· Require or encourage the use of financial products, such as prepaid cards, that may carry additional or undisclosed fees;
· Contain contract terms that limit consumers’ legal rights, including provisions related to arbitration, class actions, or shortened time periods to bring a claim; or
· Otherwise violate federal or state consumer protection laws.
Servicemembers may not have been aware that these protections applied to them at the time they took out a refund advance loan. As a result, individuals could have entered into loan agreements that included terms prohibited by law.
Join our Tax Refund Advance Loan investigation.
If you were/are on active duty in the U.S. military and obtained a tax refund advance loan from Jackson Hewitt, Liberty Tax, TaxAct, or a similar provider within the past five years, you may be entitled to compensation. Contact us for a free case evaluation.