H&R Block Inc. has sued the U.S. unit of HSBC Holdings PLC in an effort to force the bank to provide its highly popular and profitable instant refund anticipation loans and checks during the coming tax season.
In a suit filed in a U.S. district court in Missouri on Friday, H&R Block alleged HSBC has breached a 2005 contract requiring it to provide the loans and said if HSBC doesn't act in the next two months, it won't be able to offer the products.
H&R Block, the nation's biggest tax service provider, said its inability to offer the products this year "would damage or destroy Block's relationships with the millions of clients who desire them, would injure Block's reputation and customer goodwill and cannot be remedied by mere monetary damages."
It said that the loans and checks have proved to be highly successful products and have significantly increased tax preparation customer traffic.
