UPDATE 1-H&R Block loses refund loan clients, to take Q4 charge

* To take Q4 charge of $0.05/shr

* Charge related to loss of some clients due to lack of RALs

* Shares down 2 percent after the bell

(Follows Alerts)
April 7 (Reuters) – H&R Block Inc said it would take a
charge in the fourth quarter, as it lost some clients due to its
inability to offer refund anticipation loans, sending its shares
down 2 percent in extended trade.

The top U.S. tax preparer will incur a charge of about 5
cents a share in the quarter ending April 30.

Tax preparers have been hit by the U.S. government’s
clampdown on the highly profitable refund anticipation loans
(RALs), which are funded by various banks and are repaid by the
borrowers annual tax refund.

Regulators, like the Federal Deposit Insurance Corp and the
Office of the Comptroller of the Currency, have said the loans
are risky and have asked banks to cease funding them.

Despite the loss of some clients, the company continued to
grow the number of returns prepared at its stores. Total retail
returns prepared through March 31 rose 2.6 percent.

Shares of Kansas City, Missouri-based H&R Block were down 2
percent at $17.65 in trading after the bell. They closed at
$17.97 Thursday on the New York Stock Exchange.
(Reporting by Jochelle Mendonca in Bangalore; Editing by Sriraj
Kalluvila)

UPDATE 1-H&R Block loses refund loan clients, to take Q4 charge