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refund anticipation loan

Bait and Switch on Refund Anticipation Loans

Adam Rust's picture

Posted February 18, 2013

In most banking contexts, bait-and-switch tricks involve a last-minute surprise that increases the cost of borrowing. But in a development that turns bait-and-switch on its head, this year some chains are advertising the availability of loans that they will not always offer.

Following a successful effort by the FDIC to eliminate bank refund anticipation loan origination, some of the national preparers have come out with replacements to the traditional refund anticipation loan. It is no accident that in each case, the money

FDIC-Republic Hearing Set for Feb. '12: RALs are Back

Adam Rust's picture

Posted July 21, 2011

In an 8-k released this morning, Republic Bancorp reported that its ALJ hearing with the FDIC is now scheduled for Feb. 6th, 2012.

The hearing with an administrative law judge is the first step in settling a disagreement between the FDIC and Republic over their refund anticipation loan ("RAL") program. The FDIC issued a guidance earlier this year which included an

Whither Jackson Hewitt?

Adam Rust's picture

Posted November 18, 2010

Tax preparation firm Jackson Hewitt has until Saturday to meet the terms of its line of credit agreement with Wells Fargo.

Wells Fargo stipulated that JTX needed to have full funding for its refund anticipation loan (RALs) offerings for the upcoming tax season.  Currently, Jackson Hewitt has funding lined up with Republic Bank of Kentucky (RBCAA). Republic said that it expects to impose new underwriting criteria. That could mean that fewer consumers will be able to get a RAL in the first place.

The mystery in all of this is Wells. The event of default is a condition that gives Wells the ability to pull

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