Can HSBC hold my return?

Question

I did my taxes using H&R Taxcut. I used Direct Deposit, with the "Simple Pay" option. The bank that handles H&R is HSBC. I currently have a credit card with them that has an outstanding balance. The IRS says the refund was deposited on Feb. 9th. Nothing in my account. Can HSBC withold my return because I owe them money?

No, no judgment. I'm just a little behind in payments. I don't use them as a bank, but the H&R software uses them to transfer the money from the IRS into my local bank. Problem is no money has been deposited into my account, but the IRS says it has and that I need to check with my preparer. Should I just call the HSBC main office?

Answer 1

Have you ever tried to call them? If I was you, I will try it first...Hope it will help.

Answer 2

A judgement isn't needed. A standard clause in most credit agreements gives the lender the right to offset overdue balances with funds on deposit in another account in the financial institution controlled by the debtor.

Whether or not one of the pass-through accounts used by tax prep mills for fee payment would be considered to be "controlled" by the debtor might be a subject of debate, but if they grabbed the money you'll have a hard time getting it back.

I'm not saying that this is what happened, just that it can happen without a judgement. It would be pretty easy to verify though. Just check the balance outstanding on the credit card account. If they did use those funds to offset the debt it will show up there.

Answer 3

Do they have a judgment against you? What they may have done is not take your refund directly, but deposited it into your bank account and then immediately garnished the bank account. So, they didn't garnish your tax refund.....they garnished your bank account. Check you bank account activity for all of the withdrawls from the account.