Professor Elam

Monday Dec 27 2010

We last visited HR Block on Dec 8 of this year. We noted HRB had adopted a strategy of lending Tax Anticipation Loans to customers. Now the government has struck down some of that 

business. Desperate, HRB even sued their ultimate lender, HSBC, which does not sound like a particularly good idea to me. Our point is that one should not stray too far from the basic business, preparing tax returns. The money lending business was one of the causes of the problems at GM and Ford, they made more money lending money than making cars.