JP Morgan Chase has just given word to the Community Reinvestment Association of North Carolina that it will be exiting the refund anticipation loan business. CRA-NC heard the news through their RAL department. In a separate e-mail, the news was confirmed by a CRA officer at Chase.
The new direction will be effective immediately.
This is a huge decision. Chase supplied refund anticipation loans to approximately 13,000 independent tax preparation firms. BankTalk has discussed how well those partners followed the law. Suffice to say, Chase is probably averting a near-term public relations disaster by moving on without RALs.
Going forward, the playing field for refund anticipation loans is narrowing. H&R Block will continue to have a funding stream for RALs