H&R Block loses tax refund loan banking partner

[The Straight Story]

H&R Block loses tax refund loan banking partner

Millions of H&R Block Inc. customers who relied on short-term loans backed by their anticipated tax refunds will not have that option this year since Block's banking partner was forced by federal regulators to stop offering the loans.

Block could lose millions of dollars in revenue, because a large percentage of its customers use refund anticipation loans.

RALs, typically used by low-income customers who file their taxes early in the season, are short-term loans backed by an expected federal income tax refund.

It's a blow to Block, which one analyst said could lose up to 7 percent of its customers to competitors still offering the loans.


http://www.businessweek.com/ap/financialnews/D9KCD3900.htm