H&R Block Class Action Lawsuit 2026: The Military Lending Act Case, Settlement Status, and What Comes Next
Quick Answer
- A proposed class action alleges H&R Block charged military members illegal fees on tax refund advance loans.
- No settlement exists, no money is available, and no claim form is open right now.
- The case remains in early litigation stages with no deadlines set for class members.
You searched for the H&R Block class action lawsuit because you saw a headline, got a notification, or heard something about a settlement. Here’s the honest answer: there is no H&R Block class action settlement in 2026 that you can file a claim for right now.
What exists is a proposed class action filed in February 2026. It’s real. It’s active. But it hasn’t settled, hasn’t been certified as a class, and hasn’t produced a single dollar for anyone yet. Anyone telling you otherwise is either confused or trying to scam you.
This guide covers every verified detail about the case: who filed it, what it alleges, who might qualify if it ever settles, and what you should actually do right now. You’ll learn the difference between this military lending case and the separate tax data privacy lawsuits involving H&R Block.
The Facts
| Case Name | Montgomery v. HRB Tax Group, Inc. et al. |
|---|---|
| Court | U.S. District Court, Southern District of California |
| Case Number | 3:26-cv-00759-JLS-MSB |
| Status | Active litigation, H&R Block, Inc. dismissed without prejudice |
| Fund Size | Not yet confirmed (no settlement) |
| Est. Per Person | Not yet determined |
| Claim Deadline | TBD, watch for court updates |
| Administrator | Not yet appointed |
| Proof Needed | Check claim form if settlement is reached |
Is the H&R Block Class Action Lawsuit Real or a Scam?
The H&R Block class action lawsuit is real and verified. It was filed on February 6, 2026, in the U.S. District Court for the Southern District of California. The case number is 3:26-cv-00759-JLS-MSB .
The lawsuit is called Montgomery v. HRB Tax Group, Inc. et al. The named plaintiff is Joshua Montgomery. The defendants originally included HRB Tax Group, Inc., H&R Block, Inc., Pathward, N.A., and Emerald Financial Services, LLC .
On May 4, 2026, U.S. District Judge Janis L. Sammartino granted a joint stipulation to dismiss H&R Block, Inc. as a defendant. The dismissal was without prejudice, meaning H&R Block, Inc. could be brought back into the case later if the parties agree or the court allows it. The other defendants remain in the case .
Key Takeaway: This is a legitimate federal lawsuit, but it has not produced a settlement or any money for anyone. Anyone claiming otherwise is lying to you.
How Much Could You Get from the H&R Block Lawsuit?
There is no payout amount yet, and anyone who gives you a number is guessing. The case is in its earliest stages. No settlement has been reached, no class has been certified, and no damages have been calculated .
Here’s what you need to understand about class action money:
| Stage | What It Means | Money Available? |
|---|---|---|
| Filed | Lawsuit submitted to court | No |
| Litigation | Discovery, motions, arguments | No |
| Class Certification | Judge approves group status | No |
| Settlement Talks | Parties negotiate a number | Not yet |
| Preliminary Approval | Judge reviews proposed deal | Not yet |
| Claims Period | Class members file forms | Not yet |
| Final Approval | Judge signs off on payouts | Not yet |
| Distribution | Checks mailed or deposited | Not yet |
The case is currently somewhere between “Filed” and “Class Certification.” That’s the beginning of a process that typically takes one to three years before any money moves .
Key Takeaway: The H&R Block lawsuit payout is not yet determined because there is no settlement, no certified class, and no court-approved damages figure.
Reality Check: No one will text you about H&R Block settlement money. No legitimate settlement administrator asks you to pay a fee to receive a payout. If you get a message saying you owe money to unlock a class action payment, delete it. That’s a scam, not a lawsuit update.
Who May Qualify for the H&R Block Class Action?
You may qualify if you are an active-duty military service member or a dependent of one who took out an H&R Block Refund Advance Loan or Emerald Advance Loan. The proposed class covers people protected by the Military Lending Act .
The lawsuit seeks to represent two groups:
- Active-duty military service members covered by the Military Lending Act who entered into an agreement for an Emerald Refund Loan or similar product that included finance charges, refund transfer fees, or check disbursement fees
- Dependents of active-duty service members who took out the same products
The Military Lending Act protects active-duty service members and their dependents from predatory lending. It caps the Military Annual Percentage Rate at 36 percent. The lawsuit claims H&R Block’s fees pushed the effective rate above that cap .
You cannot file a claim right now because no settlement exists. The court has not yet certified the class. If that happens, and if a settlement is reached, eligible class members will be notified through official channels .
Key Takeaway: Eligibility is limited to military members and their dependents who used specific H&R Block loan products. Being a regular H&R Block customer does not qualify you for this case.
What Are the Allegations Against H&R Block?
The lawsuit alleges H&R Block disguised illegal loan fees as tax preparation costs to evade Military Lending Act limits. The 31-page complaint claims the company marketed Refund Advance loans as “no fee” and “0% APR” while charging hidden costs that pushed the true rate over the legal cap .
Here’s the specific allegation breakdown:
- Refund Advance Loan: Marketed as having no fees and zero percent APR. But borrowers allegedly had to open Pathward accounts, including prepaid debit cards or refund transfer accounts, which came with fees. Military members were charged a $39 refund transfer fee and a $25 check disbursement fee .
- Emerald Advance Loan: Advertised with a stated APR of about 35.9 percent. But the lawsuit claims borrowers had to receive funds through Pathward-issued accounts that imposed additional fees, pushing the effective rate above 36 percent .
- Illegal Waivers: Both loan products allegedly included mandatory arbitration clauses and class action waivers. The Military Lending Act prohibits creditors from requiring arbitration or class action waivers for covered borrowers .
The lawsuit claims these indirect fees were conditions of getting the loan and should have been included in the Military Annual Percentage Rate calculation. When annualized over the short loan period, the true rate far exceeded 36 percent .
H&R Block has not publicly responded to these allegations. No court has found the company liable. These are unproven claims .
How Do You File a Claim for the H&R Block Settlement?
You cannot file a claim right now because no settlement exists and no claim form is open. There is nothing to file and nowhere to file it. Anyone offering you a claim form is either premature or fraudulent .
If a settlement is reached in the future, the process typically works like this:
- Wait for official notice. The settlement administrator will send notice by mail or email to people identified as class members.
- Visit the official settlement website. The notice will include a website address. Only use that official site.
- Confirm your identity. You will need to verify your name and military status.
- Provide loan details. You will enter information about your H&R Block loan, including fee amounts you paid.
- Upload documentation if required. Loan statements, fee receipts, or bank records may be requested.
- Submit before the deadline. Missing the claim deadline will likely bar you from payment.
- Save your confirmation number. Keep it for your records.
The estimated time to complete a claim, once a portal opens, is typically 10 to 15 minutes .
Key Takeaway: There is no claim form to fill out today. Do not pay anyone who offers to “file” an H&R Block class action claim for you.
What Is the Deadline for the H&R Block Class Action?
There is no claim deadline, opt-out deadline, or objection deadline in the H&R Block military lending case yet. None have been set by the court or the parties .
These deadlines only exist after a settlement is reached and preliminarily approved by a judge. At that point, the court sets specific dates for:
- Filing a claim
- Excluding yourself from the settlement (opting out)
- Objecting to the settlement terms
- The final approval hearing
Since no settlement exists, none of these dates apply. The case is still in active litigation. The next major milestone will likely be a ruling on class certification or a motion to dismiss .
What Is the Difference Between This Case and the H&R Block Tax Data Lawsuits?
This case is about loan fees charged to military members. The tax data lawsuits are about privacy violations involving tracking pixels. They are completely separate legal matters with different plaintiffs, different allegations, and different defendants.
The military lending case (Montgomery v. HRB Tax Group) focuses on the Military Lending Act and loan products .
The tax data lawsuits involve allegations that H&R Block’s online tax software used tracking pixels that sent taxpayer information to Meta and Google without consent. Those cases include Rios v. HRB Digital LLC and Smith v. Google, LLC .
Key differences:
| Case | Focus | Status |
|---|---|---|
| Montgomery v. HRB Tax Group | Military lending, loan fees | Active litigation, no settlement |
| Rios v. HRB Digital | Tax data privacy, arbitration appeal | On appeal to 9th Circuit |
| Smith v. Google | Tax data privacy, wiretap claims | Jury trial set for November 2026 |
| LA County settlement | Tax data privacy, California consumers | $367,540 restitution fund |
The Los Angeles County settlement is the only H&R Block-related matter with actual money available. It created a $367,540 restitution fund for eligible California customers who used H&R Block’s DIY online tax preparation website between November 16, 2019, and November 23, 2022, and encountered certain screens related to Education Credits or Health Savings Accounts .
That settlement is separate from the military lending case and has its own eligibility rules and timeline.
What Happens Next in the H&R Block Military Lending Case?
The case will proceed through standard federal litigation stages. Here’s the expected timeline based on typical class action procedures:
Expected late 2026: Ruling on class certification or dispositive motions
Expected 2027: Discovery completion, expert reports, potential settlement talks
Expected 2027-2028: Trial or settlement
If settlement occurs: Claims period opens, typically 60 to 90 days for filing
If settlement approved: Payments distributed within 30 to 90 days after final approval
No specific dates have been set by the court for any of these stages .
The dismissal of H&R Block, Inc. as a defendant in May 2026 was a procedural step, not an end to the case. The claims against HRB Tax Group, Pathward, and Emerald Financial Services remain active .
Key Takeaway: The H&R Block military lending case is years away from any payout. Watching for class certification is the next meaningful development.
Frequently Asked Questions
Is there an H&R Block class action settlement in 2026?
No. The military lending case is in active litigation with no settlement reached. There is no money available and no claim form to file.
How much will I get from the H&R Block lawsuit?
No payout amount has been determined. The case has not settled, and no class has been certified.
Who qualifies for the H&R Block military lending lawsuit?
Active-duty military service members and their dependents who took out H&R Block Refund Advance Loans or Emerald Advance Loans may be covered.
Can I file a claim now for the H&R Block class action?
No. There is no claim form because there is no settlement. Filing is only possible after a settlement is reached and approved.
What is the deadline to join the H&R Block class action?
No deadline has been set. Deadlines only exist after a settlement is reached and preliminarily approved by the court.
Is the H&R Block tax data privacy lawsuit the same as this one?
No. The military lending case is about loan fees. The tax data cases are about tracking pixels and privacy violations.
What is the $367,540 H&R Block restitution fund?
It is a separate settlement reached by Los Angeles County with H&R Block over tax data privacy. It has its own eligibility rules and is not part of the military lending case.
Should I hire a lawyer to join the H&R Block class action?
You do not need to hire a lawyer to be part of a class action. Class members are represented by class counsel. If you want individual advice, consult an attorney.
