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)
    
    

    
    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