Jackson Hewitt and TurboTax Hit With Class Actions Over Illegal Fees Charged to Military Members

Tax preparation services Jackson Hewitt Inc. and Intuit Inc. have each been hit with a class action lawsuit over claims they unlawfully extract value from their military customers. Both lawsuits, filed in Washington and California federal courts in 2026, accuse the companies of charging service members and their dependents fees on short-term tax refund loans that push the effective interest rate well above the 36% cap set by federal law — and of locking borrowers into arbitration agreements that the Military Lending Act expressly prohibits.

Quick Facts: Jackson Hewitt and TurboTax Military Lending Act Lawsuits

Field	Detail
Lawsuits Filed	2026
Defendants	Jackson Hewitt Inc. + Republic Bank & Trust Co. (Lawsuit 1); Intuit Inc. d/b/a TurboTax + Intuit Financing Inc. + MVB Bank Inc. + WebBank (Lawsuit 2)
Alleged Violation	Military Lending Act (MLA), 10 U.S.C. § 987 — 36% MAPR cap; mandatory arbitration ban
Who Is Affected	Active-duty service members, Guard/Reserve on active duty, and their dependents who took out refund anticipation or advance loans from these companies
Current Court Stage	Newly filed — pre-litigation
Courts & Jurisdiction	Washington federal court (Jackson Hewitt); U.S. District Court, Southern District of California (Intuit/TurboTax)
Lead Plaintiffs	Paul Allen Perez, U.S. Navy (Jackson Hewitt); Isabelle Heck, U.S. Army dependent (Intuit)
Next Hearing Date	TBD — cases newly filed, no hearings set
Official Case Websites	TBD — none established at this stage
Last Updated	May 23, 2026

What Are the Jackson Hewitt and TurboTax Lawsuits About? Perez v. Jackson Hewitt Inc. et al. and Heck v. Intuit Inc. et al.

Here is the core issue. Both Jackson Hewitt and TurboTax offer short-term loans tied to customers’ expected tax refunds. Jackson Hewitt calls them refund anticipation loans (RALs). TurboTax markets them as Refund Advance Loans. Both companies advertise these products as low-cost or even fee-free — but the lawsuits argue that when you add up all the mandatory fees, account charges, and banking costs built into the products, the true cost of borrowing crosses a line that federal law draws specifically to protect military families.

The Military Lending Act became law in 2006 after a U.S. Department of Defense study found that active-duty military members were prime targets for predatory consumer lenders. The MLA caps the Military Annual Percentage Rate — known as the MAPR — at 36% for active-duty service members and their dependents. That cap is not just about the stated interest rate. The MAPR calculation includes application fees, participation fees, finance charges, and credit insurance premiums — not just the headline interest number. A loan advertised as “0% interest” or “no fee” can still violate the MLA if the total cost of getting the money back pushes the MAPR above 36%.

Plaintiff Isabelle Heck, a U.S. Army veteran and dependent of an active-duty service member, argues Intuit is in violation of the MLA. She seeks to represent consumers who used a TurboTax Refund Advance loan or similar product and were charged fees or interest that allegedly pushed the Military Annual Percentage Rate above the 36% cap. MVB Bank, which holds the loan proceeds, and WebBank, which originated the loans, are also named as defendants.

Related article: Grubhub Class Action Lawsuit, Illinois Drivers Allege Wage Theft and Unlawful Facial Scans

On the Jackson Hewitt side, plaintiff Paul Allen Perez, a member of the United States Navy, seeks to represent borrowers who obtained Jackson Hewitt RALs during the applicable period and were required to have their federal tax refunds sent through temporary accounts to repay the loans and deduct fees. Republic Bank & Trust Company, which issues those loans, is a co-defendant.

Both complaints also raise a second, separate violation: the Military Lending Act prohibits creditors from requiring active-duty borrowers to submit to mandatory arbitration or give up rights they have under state or federal law. The MLA expressly prohibits creditors from requiring covered borrowers to submit to arbitration or waive their rights to seek relief in court as a condition of consumer credit. Both lawsuits allege exactly that happened here.

These cases are part of a wider wave of MLA enforcement against tax preparers in early 2026. A federal class action filed in February 2026 makes similar claims against H&R Block and its lending partners, alleging the company’s Refund Advance and Emerald Advance loans charge active-duty military members fees that push the effective interest rate above the MLA’s 36% cap — despite being marketed as free.

If you want background on Intuit’s prior legal battles, AllAboutLawyer.com has covered the TurboTax $141M free filing settlement and active 2025–2026 TurboTax class actions in detail.

Are You Part of These Class Action Lawsuits?

These cases cover a specific group — not all Jackson Hewitt or TurboTax customers qualify. The MLA protections apply only to covered borrowers, so your military status at the time of the loan matters.

You may be part of this class if you:

• Were on active duty in any branch of the U.S. military, or on active National Guard or Reserve duty, at the time you took out the loan
• Are the spouse, child, or financial dependent of a qualifying active-duty service member
• Took out a Refund Anticipation Loan from Jackson Hewitt (issued through Republic Bank & Trust) during the applicable limitations period
• Took out a TurboTax Refund Advance Loan (through MVB Bank, WebBank, or related entities) during the applicable limitations period
• Were required as a condition of the loan to route your refund through a temporary account that charged fees
• Signed a loan agreement containing an arbitration clause or a waiver of your right to sue

You are likely NOT included if you:

• Were a civilian at the time of the loan with no qualifying military dependent status
• Took out a mortgage, car loan, or other credit product — those are specifically excluded from MLA coverage
• Used Jackson Hewitt or TurboTax only for tax preparation, without taking any refund loan product

If you are unsure whether you qualify as a “covered borrower” under the MLA, your installation’s Judge Advocate General (JAG) office can help you determine your status at no cost.

What Are Plaintiffs Seeking in These Lawsuits?

Both lawsuits seek to hold the companies and their banking partners accountable for two categories of harm: the illegal fees themselves, and the illegal contract terms that stripped borrowers of their rights.

On the fee side, the MLA allows plaintiffs to seek actual damages — the difference between what they paid and what they legally should have paid — plus statutory damages. In 2025, regulators increased enforcement on MLA violations, with examiners focusing on errors in MAPR compliance, missing disclosures, and improper consumer credit terms. Both lawsuits also seek injunctive relief that would require Jackson Hewitt and Intuit to overhaul these loan products so they comply with the MLA going forward.

On the arbitration clause side, any contract provision that strips a service member of their right to seek relief in court is void and unenforceable under the MLA — and the plaintiffs argue those illegal terms entitle the class to additional relief.

No confirmed total dollar amount appears in publicly available filings at this stage.

What Should You Do If You Were Affected?

You do not need to take any immediate legal action to preserve your place in either class. Most class members are included automatically once the class is certified.

Here is what makes sense to do right now:

• Pull your tax records from the relevant years and locate any loan agreements you signed with Jackson Hewitt or TurboTax — look for any mention of arbitration clauses, refund transfer accounts, or fee disclosures
• Document your military status at the time of the loan — a copy of your orders, your Leave and Earnings Statement (LES), or your DD-214 can confirm your covered borrower status
• Contact your JAG office if you believe your loan terms violated the MLA — JAG attorneys provide free legal help to service members and their dependents
• Monitor both cases through PACER at pacer.uscourts.gov — search “Perez v. Jackson Hewitt” for the Washington case and “Heck v. Intuit” or the related Bostick case (No. 3:26-cv-01444, S.D. Cal.) for the California case
• Consult a consumer rights lawyer if you want to pursue an individual claim or understand whether opting out of the class would benefit you

Do not expect a claim form soon. These cases are in their earliest stages.

Jackson Hewitt and TurboTax MLA Lawsuit Timeline

Milestone	Date
MLA Enacted by Congress	2006
Related H&R Block MLA Class Action Filed	February 6, 2026
Bostick v. Intuit Filed (S.D. Cal., No. 3:26-cv-01444)	March 31, 2026
Perez v. Jackson Hewitt Filed (Washington Federal Court)	May 7, 2026
Heck v. Intuit Filed (California Federal Court)	May 2026
Class Certification Motions	TBD — not yet filed
Next Scheduled Hearings	TBD — none set yet
Expected Settlement Timeline	TBD — consumer lending class actions typically resolve in 1–3 years

Frequently Asked Questions

Is there a class action lawsuit against Jackson Hewitt and TurboTax for overcharging military members? 

Yes. Plaintiff Paul Allen Perez, a U.S. Navy member, filed a class action against Jackson Hewitt and Republic Bank & Trust in Washington federal court, while Isabelle Heck, a U.S. Army dependent, filed separately against Intuit, TurboTax, MVB Bank, and WebBank in California federal court — both alleging violations of the Military Lending Act’s 36% MAPR cap and mandatory arbitration ban.

Do I need to do anything right now to be included?

 No. Class members are typically included automatically once the court certifies the class. No claim form or registration exists at this stage. Save your loan documents and monitor this page for updates.

What is the 36% MAPR cap under the Military Lending Act?

 The MLA caps the total cost of most consumer credit products for active-duty service members and their dependents at a 36% Military Annual Percentage Rate. That calculation includes not just interest, but also application fees, participation fees, and finance charges — meaning a “0% interest” loan can still violate the cap if the fees are high enough.

Can I get free legal help if I think my loan violated the MLA?

 Yes. Every military installation has a Judge Advocate General (JAG) office that provides free legal consultation to service members and their dependents. The CFPB also has resources for military families at consumerfinance.gov/servicemembers.

When will a settlement be reached in these cases? 

TBD — both cases were filed in early 2026 and are in their earliest stage. Consumer lending class actions of this type typically take one to three years to resolve. No settlement has been announced and no payout amounts are confirmed.

Can I file my own individual lawsuit against Jackson Hewitt or TurboTax instead?

 Yes. Under the MLA, a covered borrower can bring an individual action against a creditor who knowingly violates the law. A free legal consultation with a consumer rights lawyer or your JAG attorney can help you weigh whether an individual claim or class membership better fits your situation.

Does this affect veterans or retired military members?

 The MLA specifically protects active-duty service members and their dependents — not veterans or retirees unless they are currently on qualifying active orders. If you were on active duty at the time you took the loan, you are likely a covered borrower regardless of your current status.

Sources & References

• Perez v. Jackson Hewitt Inc. et al. — Washington Federal Court (filed May 2026) — pacer.uscourts.gov
• Bostick v. Intuit Inc. et al., No. 3:26-cv-01444 — U.S. District Court, Southern District of California (filed March 31, 2026) — pacer.uscourts.gov
• Military Lending Act (MLA), 10 U.S.C. § 987 — ftc.gov/legal-library/browse/statutes/military-lending-act
• CFPB — Military Lending Act Rights Explained — consumerfinance.gov
• Law360 — “Jackson Hewitt Tax Loans Flout Military Credit Law, Suit Says” (May 7, 2026)

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against official court records, federal law citations, and primary source filings. Last Updated: May 23, 2026.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.