People v. JTH Tax, Inc.

Defendant JTH Tax, Inc., doing business as Liberty Tax Service (Liberty), appeals from a judgment issued after a bench trial awarding plaintiff, the People, approximately $1,169,000 in civil penalties, ordering Liberty to pay approximately $135,000 in restitution, and permanently enjoining Liberty in several ways for violating state and federal lending, unfair competition, consumer protection, and false advertising laws. Liberty argues that the trial court made errors of law and/or fact in determining that a “handling fee” charged for certain bank products was an undisclosed finance charge under the federal Truth in Lending Act ( 15 U.S.C. § 1601 et seq.; TILA); Liberty’s cross-collection practices regarding past loan debts owed by customers were improper; Liberty was vicariously liable for its franchisees’ advertising; certain civil penalties for advertising violations should be paid by Liberty; and a permanent injunction regarding certain of Liberty’s practices going forward was necessary and appropriate.

We disagree with each of Liberty’s arguments. We find the trial court’s analyses and findings to be thoughtful and well calibrated regarding the circumstances before…