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Tuesday, December 28, 2010

No Refund Loans From H&R Block, Feds Halt Banking Partners Business


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Millions of H&R Block Inc. customers who relied on short-term loans backed by their expected tax refunds will not have that option this year, since Block’s banking partner was forced by federal regulators to stop offering the loans.
It’s a blow to Block, the nation’s largest tax preparation company, which could lose tax customers to competitors still offering the loans and has virtually no time to find a new funding partner before tax season starts in January.
That means Block could lose millions of dollars in revenue, since nearly 45 percent of its customers use a refund anticipation loan or refund anticipation checks. The company made about $146 million on the two products in 2010.
http://www.kansascity.com/2010/12/27/2545748/hr-blocks-refund-loans-cut-off.html
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