Conformed
UNITED STATES 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) July 22, 1996
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)
Item 5. Other Events.
The following is the text of a press release of
Beneficial National Bank, a subsidiary of Beneficial Corporation,
issued on July 22, 1996:
BENEFICIAL CORPORATION SUBSIDIARY GETS H&R BLOCK'S EXCLUSIVE
RAL BUSINESS IN 10-YEAR PACT
--Contract Replaces Existing Agreements--
Entities May Share Certain Revenues and Liabilities
WILMINGTON, Delaware -- H&R Block Tax Services Inc. (Block) and
Beneficial National Bank (BNB) today announced the signing of a 10-year
agreement that gives BNB the exclusive right to offer Refund
Anticipation Loans (RALs) through all of Block's Company-owned offices.
Previously, existing agreements between BNB and Block called for
renegotiation of a contract every three years.
The new agreement also gives Block a share in both the revenue and the
credit risk of the Refund Anticipation Loans by allowing Block
Financial Corporation to purchase an interest in the portfolio of
refund anticipation loans originated by Block Company-owned offices.
"This mutually rewarding venture with Block provides longevity and
stability in Beneficial National Bank's Refund Anticipation Loan
product and represents an extremely significant, new, long-term
relationship with Block," said Finn M.W. Caspersen, chairman and chief
executive officer of Beneficial Corporation. Beneficial National Bank
is a subsidiary of Beneficial Corporation.
"Beneficial National Bank has demonstrated the ability to deliver
profitably the most attractive products to our customers in the most
cost-effective manner," said Frank Salizzoni, interim president and
chief executive officer of H&R Block, Inc. "We're pleased with the
commitment they've shown to the RAL product and look forward to this
new, long-term association."
The new agreement also opens attractive new opportunities for BNB,
which can now do business with other electronic return originators in
certain states served also by Block offices. A previous agreement gave
Block exclusive access to BNB's RAL product in those states.
"Beneficial National Bank and H&R Block, with this agreement, form a
fully cooperative alliance to offer eligible taxpayers the popular RAL
product," Caspersen added. "In addition to providing Block with the
opportunity to share in revenues generated by BNB's RAL product, this
contract provides for a sharing of risk in the portfolio."
Beneficial National Bank's experience in refund anticipation lending
spans 10 years and includes sophisticated, on-line, proprietary credit
screens to manage risk. Beneficial National Bank processed 2.6 million
RALs during the 1996 tax season. Beneficial Corporation previously
announced that revenue from the 1996 season would exceed previous
records.
Additionally, the agreement envisions the offering by BNB or its
affiliates other financial products and services through Block
offices in the future.
Founded in 1955, H&R Block, Inc. (NYSE:HRB) is a diversified company
offering tax and financial services. H&R Block is the world's largest
tax preparation firm, serving 17.4 million taxpayers in nearly 9,700
offices in the United States, Canada, Australia and 15 other countries
and territories in 1996. In the United States, H&R Block Tax Services,
Inc. handled approximately one in every seven returns filed with the
Internal Revenue Service this past tax season. Block Financial
Corporation, started in 1993, develops and provides technology-driven
financial services.
Beneficial Corporation is a $15 billion, New York Stock Exchange-listed
financial services holding company. Subsidiaries of the Company provide
financial services through their various consumer-finance, credit-card,
banking and insurance operations located throughout the United States,
Canada, the United Kingdom, Ireland and Germany.
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/ Samuel F. McMillan
Samuel F. McMillan
Senior Vice President and
Treasurer
Dated: July 22, 1996
