Key Changes to H&R Block Customer Service and Downgrade Processes
The FTC’s complaint, announced in February 2024, alleged that H&R Block unfairly hindered customers seeking to downgrade to less expensive tax products. The company forced users to contact H&R Block customer service for downgrades, unfairly deleted previously entered tax data, and made misleading claims about “free” tax filing options.
To address these issues, the settlement mandates several changes. By February 15, 2025, H&R Block must enable customers to downgrade products through automated means like chatbots, eliminating the requirement to call or chat with live H&R Block customer service agents. This improvement aims to streamline the downgrade process, enhancing customer experience and convenience.
Further changes are required by the 2026 tax season. H&R Block must cease the practice of deleting a customer’s previously entered information upon downgrading. Specifically, if a customer downgrades back to their original product, their progress should be saved, allowing them to resume where they left off. This change will save customers significant time and effort during the tax filing process. H&R Block is also required to provide a clear and readily accessible method for downgrading without contacting customer service.
Addressing Deceptive Advertising Practices
Beyond customer service changes, the settlement addresses H&R Block’s advertising practices. The company is now required to disclose in its “free” advertising either the percentage of taxpayers eligible for these offers or clearly state that most taxpayers do not qualify. This transparency aims to provide consumers with a more accurate understanding of the availability of free tax filing options.
Conclusion: Improved Transparency and Customer Experience
The FTC settlement compels H&R Block to make substantial changes to its customer service and advertising practices. By simplifying downgrades, preserving user data, and providing transparent advertising, H&R Block is expected to enhance the overall customer experience and rebuild trust with its users. These changes underscore the importance of clear communication, fair practices, and customer-centric service in the tax preparation industry.
