Block has sued HSBC alleging that the institution is violating a contract under which it funds the refund loans by not taking steps necessary to ensure Block can offer a program. CEO Alan Bennett said the two parties are still talking. And he acknowledged that Block might be unable to offer RALs during the 2011 tax season.
Meanwhile, the company reported a loss of $109,049 for the most recently ended period, down from $128,587 a year earlier. Block normally loses money during the second quarter. It reported $322.9 million in revenue, down 1 percent from $326.8 million a year earlier. Tax revenue rose to $110.9 million from $109.3 million a year earlier. However, McGladrey revenue fell to $203.4 million, a decline from $206.6 million in last year's corresponding period.