This is a development with two main impacts. First, it guarantees that financial problems at Pacific Capital will not prevent Jackson Hewitt from offering refund anticipation loans this year. Second, it provides a line of credit to refund anticipation loans with high interest rates. The rates, by MetaBank’s own calculation, are 150 percent APR.
In a brief reference on their latest 10-K, MetaBank makes reference to a pilot program that began this spring to fund RALs for “a major tax preparation firm.”
During fiscal 2009 the Bank participated in tax refund anticipation loans with a major tax preparation firm after participating in a test program with that firm in fiscal 2008.
The major tax preparer is Jackson Hewitt (JTX). Jackson Hewitt, it turns out, was not going to be left holding (more…)