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for RTs, but the IRS has not advanced this initiative. Taxing authorities in various state,
local, and foreign jurisdictions in which we operate have also introduced measures
seeking to modify the preparation and filing of tax returns in their respective
jurisdictions. The adoption or expansion of any measures that significantly modify tax
return preparation, expedite refunds, or otherwise reduce the need for a third-party tax
return preparer could reduce demand for our services and products and could have a
material adverse effect on our business and our consolidated financial position, results of
operations and cash flows.

5.) The Dodd-Frank Act created the CFPB to administer and, in some cases, enforce U.S.
federal financial consumer protection laws and expanded the role of state regulators with
respect to consumer protection laws. Regulations promulgated by the CFPB or state
regulators may affect our financial services businesses in ways we cannot predict, which
may require changes to our financial products, services, and contracts. The Dodd-Frank
Act created the CFPB and gave it broad powers to administer, investigate compliance
with, and, in some cases, enforce U.S. federal financial consumer protection laws. The
CFPB has broad rule-making authority for a wide range of financial consumer protection
laws that apply to all banks, federal savings banks, and other financial services
companies, including the authority to prohibit "unfair, deceptive, or abusive" acts and
practices.

6.) The CFPB may examine, investigate, and take enforcement actions against our
subsidiaries that provide consumer financial services and products, as well as financial
institutions and service providers upon which our subsidiaries rely to provide consumer
financial services and products. The Dodd-Frank Act also expanded the role of state
regulators in enforcing and promulgating financial consumer protection laws, the results
of which could be states issuing new and broader financial consumer protection laws,
some of which could be more comprehensive than existing U.S. federal regulations. New
CFPB and state regulations may require changes to our financial products, services and
contracts, and this could have a material adverse effect on our business and our
consolidated financial position, results of operations, and cash flows. Examples of recent

7.) CFPB action include the following:
a. On November 13, 2014, the CFPB issued proposed rules that would change the
regulation of prepaid products. It is not clear when the CFPB will publish the final
version of these rules, or what their content will be. If enacted as proposed, the
rules would make prepaid cards subject to Federal Reserve Regulations E and Z,
among other things, and would apply to the H&R Block Emerald Prepaid
MasterCard®. It is possible that, depending on the form of the final rules, changes
would be necessary to the H&R Block Emerald Prepaid MasterCard® to comply
with the final rules, and that such changes could have a material adverse effect on
the revenue we derive from our H&R Block Emerald Prepaid MasterCard®
program.
b. On May 5, 2016, the CFPB issued a request for comments on its proposal to
prohibit mandatory consumer arbitration clauses in consumer financial product
contracts. We, and certain of our third party service providers, utilize consumer

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