• Report: #1013055

Complaint Review: Liberty Tax Service

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  • Submitted: Tue, February 12, 2013
  • Updated: Fri, February 22, 2013

  • Reported By: inmyopinion — Kelso Washington United States of America
Liberty Tax Service
760 Ocean Beach Hwy Internet United States of America

Liberty Tax Service Does not inform you of all "Hidden Fee's" For netspend card! Internet

*UPDATE EX-employee responds: ManyfFranchisees hate Netspend also

*UPDATE Employee: NetSpend

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   Netspend card: $0.50 charge each time you call the 1-800 number to simply check your balance or ask a question.  $1.00 charge each use at any store (plus any cost store may charge)  $2.50 charge for each withdraw at ATM (plus the ATM charge) so if it cost's $2.50 at the ATM, Plus netspend fee= $5.00 to make one transaction and go ahead and add another $19.95 for using the ATM to get a "Cash advance" on your card. SERIOUSLY!!!!!

  Just a heads up to anyone who uses the netspend card. When our taxes were being processed we were asked how we wanted our money back and the strawberry blonde went through the options. When she got to the netspend card she showed us one and said "This is what most people do and you can use it anywhere". So we decided to go ahead with that. We were not told about any of the "Fee's" and total confusion that went along with it!

    Now today our money is on our card and my husband (I did not go) went to the bank to withdraw the entire amount off (Under $700.00) and was told that he needed a pin. This already had a pin set to it so he calls the netspend customer service and was told that he is not authorized on the card and they can only talk to me. He explained that we are married, filled jointly and are even both on the bank account where he was trying to withdraw. Nope! So he drives home, I wait on hold & am told to try to reset my pin. I then add his info giving netspend his name, date of birth and Social Security number so he can call if needed. Ok, done.

    His second trip into town and tries to withdraw, Will not work. He calls and is once again told that he can not talk because he is not authorized after i set him up on the account. So he comes back home again. I sit on hold again with netspend & immediately ask to speak with a manager. It took over 10 minutes before she agreed to call one up for us. Then i am told that my husband was not added because there is only one person allowed unless we upgraded our card to be permanent, ugh...I don't think so. After a lot of talking and looking the problem was finally found to be that netspend charges $19.95 to take it all out if you do not use it for daily use buying things. WHAT! You basically have to pay for a "Cash advance" on your own money.

    When we called Liberty to ask why none of this was explained to us the manager said that she try's to tell people about the netspend card and all the fee's. IF only we had the manager doing our taxes, we would have known this. Basically once Liberty gets their "HIGH" amount for running a computer program, they really have nothing else to do with you and if you have problems, they just tell you to call netspend. Well, if we were informed about all the issues with this card by Liberty, we would have never even used this card!

   Please ask, ask and then ask some more about what fee's are associated with your tax refund options. Once you pay to have a service done you think you are in the clear and just waiting on your money.... Then you have to pay more to get it. I would think that Liberty would train their staff a little better. Friends of ours have had problems with them as well and i atleast know that none of us will be using them again.   Thank You.

This report was posted on Ripoff Report on 02/12/2013 02:40 PM and is a permanent record located here: http://www.ripoffreport.com/r/Liberty-Tax-Service/internet/Liberty-Tax-Service-Does-not-inform-you-of-all-Hidden-Fees-For-netspend-card-Internet-1013055. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 UPDATE EX-employee responds

ManyfFranchisees hate Netspend also

AUTHOR: Taxgal2010 - (United States of America)

As an ex-franchisee, I always told my customers NOT to use the Netspend Card. When they would ship a box to our stores, they went right into the trash after being cut with scissors. Liberty Tax use to run contests to see how many we can get to use this garbage product. I refused to participate knowing the headaches.

You may find it interesting to know that besides the kickbacks Liberty Corporate would get from selling this product, the now own the MetaBank which this product is associated with. Liberty purchased it last year. So perhaps the kickbacks are much larger but the service is the same.

Liberty Tax should focus on service of tax preparation to the client IMHO. They have many lawsuits about hidden fees, racketeering, and an IRS and DOJ investigation regarding their sleazy sales tactics pending at this time. Check unhappyfranchisee as well as the head Investigator at the Raleigh NC IRS center named Jerry Arrington. This company has many problems and with reports like this they will not be growing. Thanks for letting the public know what franchisees are not allowed to say when they are under contract with what we describe as a cult-atmosphere rip off of an investment. Most owners pray for a way out of their franchise agreement. They recently has a product similar to the now dead Rapid Refunds. Now that he owns his own bank, he decided to have a product called ICA (Instant Cash Loans), however, it got shut down a few weeks ago for not disclosing hidden fees as well. The CEO is no longer showing he cares about tax preparation. He cares about every penny he can make over the top of the HIGH fees to charge to the poor in Jan and Feb for those who are emotional and need their money fast. One client paid $410 for a simple w2 and a form 8863 for school credit with one dependent. This was a Corporate owned store! Many more similar stories out there and their retention is down this year. All preparers know that lady required very few forms and a 10 minute job even with printing. The argument stands that Liberty does not charge by the form, they charge by how much the refund is and what they can get from you and will overide if you attempt to walk out or pull out a coupon to keep you in the door. The $50 cash they give you is added right on your invoice and it was suppose to be an even $50 but the Area Developers were instructed by John Hewitt to charge an extra $10 on top of it which is interest and acting as a bank. Their excuse was to make up for all the "non-pays" that get the free $50 and then Liberty does not get paid from the IRS if the client has back debt, school loans or child support that eats their entire refund. So basically everyone else pays a little extra to make up for other losses. That was not how the program was originally designed, they got greedy by each year. It has been a ridiculous growing problem with this Company and the CEO, John Hewitt as the "godfather of tax industry". He was fired from Block and from his own company Jackson Hewitt many years ago.

The correct way to get the status of your refund is to use irs.gov and click "where's my refund". Check it daily for updates by entering ssn, filing status and refund amount.

Do check all Liberty tax Complaints. They are also being looked at for possible leaking people's ssn to fraudsters in several states, yet they try to combat that with telling media they are the ones who turn people in with a tip off. How do people in Miami get hundreds of people's ssn from Liberty's previous client base in past years and suddenly their identity theft appears that someone has filed under their name, ssn and had their childrens name dob and ssn? Why does it always turn out that most are Liberty Tax clients? Not hard to see why the DOJ is involved with the investigation on several levels but that is not made public. They have a RICO case in South Carolina. They have just lost a California case for not disclosing fees with their bank products and the list goes on. This company is a scam and the franchisees are in the middle of devastation handed down by the franchisor, John Hewitt which makes the owners very broke and powerless. Franchisees do not profit. They are promised to get to sell their stores for the equity they build but that is false dreams after they get about 5-7 years of free labor from owners.

-Just saying...Thanks for bringing awareness to the fact that they sell horrible products with no concern for anyone. A walmart money card has a routing and account number and why not endorse them since they now have kiosk offices in many Walmarts? Just greed, pure greed.


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#2 UPDATE Employee

NetSpend

AUTHOR: NetSpend Corporation - (United States of America)

We would appreciate the opportunity to assist you with these fees.  Please provide send your information to feedback@netspend.com and we will look into this for you.

Thank you,
NetSpend

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