Hanging over the entire retail tax prep sector is the uncertainty about what the IRS will do to the debt indicator. During his comments in May to CERCA, Mark Ernst made it clear that he expects better results from the program. Here is part of what he said back then:
The Debt Indicator as it is currently delivered is a public good – meaning the IRS provides this information so that consumers can get an advantage they wouldn’t be able to get otherwise. In as much as the DI is the primary underwriting tool, that advantage should really come in the form of lower prices. But in fact prices are higher for RALs today than they were when the DI didn’t exist. That suggests that the entire value of the DI is going to industry participants and none is going to consumers when, arguably, all of its value should go to consumers.