Greensboro Liberty Tax Franchise Owner Accused of Fleecing Local Customers With Sky-High Filing Fees

By The Greensboro Chronicle | Consumer Protection Desk

Greensboro taxpayers—many of them working families, seniors, and low-income filers—expect tax season to be stressful. What they don’t expect is to walk into a storefront tax preparer and walk out hundreds or even thousands of dollars poorer than necessary.

Yet consumer complaints, billing statements, and long-standing regulatory warnings suggest that some Liberty Tax franchise locations nationwide—including those operating locally—have raised serious red flags over opaque pricing, aggressive add-ons, and shockingly inflated fees for routine tax preparation services.

This article examines how such conduct—if proven—could violate North Carolina’s Unfair and Deceptive Trade Practices Act (UDTPA) and the Federal Trade Commission Act, and what consumers can do about it.

🔥 THE ALLEGATIONS: “ROUTINE RETURN… EXTRAORDINARY PRICE”

Consumers have reported scenarios that follow a disturbingly familiar pattern:

💰 Basic W-2 or Social Security returns billed at premium rates 🧾 Itemized fees for “bank products,” “document processing,” or “technology charges” that were never clearly explained ⏱️ No upfront price disclosure—fees revealed only after the return is completed 🚫 Pressure tactics discouraging customers from walking away once preparation has begun 📄 Refusal or delay in providing a clear written fee breakdown

For many customers, especially those seeking rapid refunds or advance products, the final bill reportedly dwarfs what independent CPAs or IRS-certified VITA programs would charge—sometimes by multiples, not percentages.

⚖️ THE LAW: WHY THIS MATTERS

🟡 North Carolina UDTPA (N.C. Gen. Stat. § 75-1.1)

North Carolina law broadly prohibits:

“Unfair or deceptive acts or practices in or affecting commerce.”

Under settled NC case law:

Failure to clearly disclose pricing can be deceptive Excessive fees paired with information asymmetry can be unfair Targeting financially vulnerable consumers is an aggravating factor Intent to deceive is NOT required

If a practice is found to violate UDTPA, consumers may recover:

Treble (3×) damages Attorney’s fees Injunctive relief

A single misleading transaction can trigger liability.

🟡 Federal UDTPA – FTC Act § 5

The Federal Trade Commission prohibits:

Unfair practices that cause substantial consumer injury not reasonably avoidable Deceptive practices involving material misrepresentations or omissions

The FTC has repeatedly warned tax preparers that:

Fee disclosures must be clear, conspicuous, and upfront Add-on products must be optional—not buried Consumers must not be misled about necessity or cost

Violations can result in:

Federal enforcement actions Civil penalties Restitution orders Franchise-wide scrutiny

🧨 WHY FRANCHISE OWNERS DON’T GET A FREE PASS

Liberty Tax operates through franchises—but local owners are independently liable for their own pricing, representations, and sales conduct.

Key legal reality:

“Corporate branding” does not shield a local owner from UDTPA liability Franchise agreements do not override consumer protection laws A pattern of overcharging may expose both the franchisee and franchisor to scrutiny

👀 WHO IS MOST AT RISK?

Consumer advocates warn that high-fee tax prep models disproportionately impact:

Seniors on fixed incomes Low-income wage earners Disability and Social Security recipients First-time filers Consumers seeking refund advances

Courts routinely consider this vulnerability when assessing whether conduct is “immoral, unethical, oppressive, or substantially injurious.”

🛑 WHAT CONSUMERS CAN DO RIGHT NOW

If you believe you were overcharged or misled:

Demand a full, itemized fee breakdown Request copies of all signed documents Compare fees with an independent CPA or IRS VITA program File complaints with: NC Attorney General Consumer Protection Division Federal Trade Commission (FTC) Consult a consumer protection attorney—many handle UDTPA claims on contingency

Remember: You don’t need fraud to win—just unfairness or deception.

🗣️ THE BIGGER QUESTION

Is tax preparation becoming less about compliance—and more about quietly extracting maximum dollars from consumers who don’t know they can say no?

If pricing is fair, it should withstand daylight.

If it isn’t, North Carolina law is very clear about the consequences.

The Greensboro Chronicle will continue monitoring consumer complaints and regulatory developments surrounding local tax preparation practices.

⚠️ LEGAL DISCLAIMER

This article is provided for educational and informational purposes only and does not constitute legal advice, tax advice, or a factual finding of liability. All allegations referenced herein are based on publicly reported complaints, consumer protection principles, and general legal analysis. Any individuals or businesses mentioned are presumed lawful unless and until proven otherwise in a court of law. Readers should consult a qualified attorney or tax professional regarding their specific circumstances.

© COPYRIGHT NOTICE

© 2026 The Greensboro Chronicle. All rights reserved.

No portion of this publication may be reproduced, distributed, or transmitted in any form or by any means without the prior written permission of The Greensboro Chronicle, except for brief quotations used for commentary, criticism, or news reporting consistent with fair use principles