Comments on: Jackson Hewitt Drops Republic

By: sdoggie

sdoggie — Fri, 02 Nov 2012 15:00:01 +0000

Stallion:
Sure, let me offer a few comments on the Block news.
First, I think we need to understand that any sale is going to take time. Just because they hire Goldman doesn’t mean that there is a suitor. I suppose its great to have a charter and all of those deposits are of value. But it may be a while before HRB frees up that capital.
I don’t know if they are going to get a RAL. They had success with the free RAC promotion last year. I think they said that they were not going to do it this year. That is a mistake in my opinion.
I think the model for non-bank RALs is in flux. One possibility is that the person getting a refund will have a chance to sell the proceeds of their refund. I am sure that the return for their refund will reflect a healthy discount. I don’t know who is going to do that. There is also the chance that it will be a non-bank tax prep sub. You never know. It would take a lot of cash to fund that. Then, it could be that the tribal lenders get into the game.

By: sdoggie

sdoggie — Wed, 10 Oct 2012 18:46:14 +0000

That is really thinking between the lines.

Yes, I can see what you are saying. I\’ll write something shortly.

By: italian stallion

italian stallion — Wed, 10 Oct 2012 15:45:51 +0000

Just saw the HRB press release about the possibility of Block dropping its S&L charter of its bank to get away from being under federal banking regs. Presumably to position itself to offer a RAL-like product to compete against JH and Liberty. Adam, what is your take? What do you think the model will look like for these RAL-like non-bank products?

By: sdoggie

sdoggie — Fri, 28 Sep 2012 17:24:38 +0000

Yes, I am implying that I do not know what they are going to do. I am also implying that I think I know what they are going to do. I think they are going to find a non-bank for tax refund loans. I had originally thought that it would be a non-bank external to their corporate family, but now it seems possible that it may a non-bank sub of one of the preparers. I hear things from my contacts out there but I think the only people that really know right now are in Parsippany and Norfolk.
Please if you know something, tell us!

By: Rachel Wishon

Rachel Wishon — Fri, 28 Sep 2012 15:21:31 +0000

Are you implying that you do not know what Liberty, J-H and others (including Republic, the all-time best player)have planned? Or are you just being safe, waiting for the confirmations that likely won’t offivially come for another couple of months?