By Bibeka Shrestha (January 17, 2012, 5:02 PM EST) -- A proposed class action launched Friday in California federal court accuses Intuit Inc. of deceptively charging a "quadruple-digit" interest rate to TurboTax clients who used tax refunds to pay for the electronic tax preparation service.
According to the suit, Intuit failed to adequately disclose the fees to customers who opted to defer paying for TurboTax Online's electronic tax preparation service until after receiving their refund, instead of paying upfront with a credit card.
Moreover, Intuit's fees far exceed the maximum interest rate allowed by California's usury laws for the company's short-term loan to customers, the suit claims.
"Defendant's attempt to construe...
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