Conformed
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported) March 3, 1995
Beneficial Corporation
(Exact name of registrant as specified in its charter)
Delaware 1-1177 51-0003820
(State or other jurisdic- (Commission (IRS Employer
tion of incorporation) File Number) Identification No.)
301 North Walnut Street, Wilmington, Delaware 19801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (302)425-2500
No Change
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
The following is the text of a press release of Beneficial
Corporation, a Delaware corporation, issued on March 3, 1995:
BENEFICIAL CORPORATION SUBSIDIARIES DISCONTINUE LAWSUIT
-- Discovery Shows Changes Cannot Be Made In Time Allowed --
IRS Reconfirms Direct Deposit Plans For Next Tax Season
FOR IMMEDIATE RELEASE
March 3, 1995
WILMINGTON, Delaware -- Beneficial National Bank and Beneficial Tax
Masters, Inc., both subsidiaries of Beneficial Corporation, today
discontinued their pending lawsuit against the Internal Revenue
Service.
On February 21, 1995, Beneficial National Bank and Beneficial Tax
Masters, Inc., filed the lawsuit to require the IRS to follow the
instructions of taxpayers who sought direct deposit of the earned
income tax credit portion of their tax refunds in connection with a
Refund Anticipation Loan (RAL). The IRS had said it planned to mail
paper checks to eligible EITC recipients, rather than electronically
deposit the money in accounts set up for them at Beneficial National
Bank.
Finn M.W. Caspersen, Beneficial Corporation's chairman and chief
executive officer, said, "We have learned during depositions and other
discovery that the IRS cannot stop the mailing of the checks to our RAL
customers at this time.
Moreover, Beneficial National Bank, Beneficial Tax Masters and
the IRS have discussed various alternatives to the mailing of checks,
but no solution appears viable within the time available. Accordingly,
continuing time-consuming and expensive litigation is not in the best
interest of anyone."
During the discussions, the IRS reconfirmed to Beneficial National Bank
and Beneficial Tax Masters that necessary programming changes would be
made to provide that in the next tax year such refunds, including the
earned income tax credit portion, would be direct deposited in bank
accounts at Beneficial National Bank and other banks as instructed by
the taxpayer.
Caspersen noted, "Beneficial subsidiaries will aggressively pursue
collection activities involving customers who previously received a
refund anticipation loan and now will also receive IRS checks in the
amount of their EITC portion. Customer service representatives at three
collection centers already are contacting RAL customers to explain the
situation. We are optimistic about future tax years following IRS
confirmation that EITC funds can be directly deposited to settle
outstanding accounts of our refund anticipation loan customers."
Beneficial Corporation is a $14 billion, New York Stock Exchange-listed
financial services holding company. Subsidiaries of the Company
provide financial services through their various consumer finance,
banking and insurance operations located throughout the United States,
Canada, the United Kingdom and Germany. The Beneficial finance system
includes more than 1,000 offices offering products and services that
meet a broad range of consumer credit needs, including credit-related
insurance.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
BENEFICIAL CORPORATION
(Registrant)
By /s/Thomas P. McGough
Thomas P. McGough
Senior Vice President-
Finance and Treasurer
Dated: March 3, 1995
