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H&R Block Gets Cut Off on Funding For Refund Anticipation Loans

Bob Lawless over at Credit Slips is reporting an interesting development that tosses a wrench in the gears for H&R Block and their continued promotion of Refund Anticipation Loans for people that believe they will get a tax refund.

Lawless said in his post:

I used to think of these firms as tax preparers with a high-priced lending product attached to them. Now, I wonder whether they have not become high-priced consumer lenders with a tax preparation service attached. – Source

The Wall Street Journal reported:

Analysts have estimated the elimination of the refund loans could lower H&R Block’s operating profitability by 10%, but that may be partly priced into the stock already. RAL-participation and related revenue made up just 3.8% of total revenue in fiscal 2010. The company prepared 20.1 million U.S. returns in fiscal year 2010, and 16.8% also purchased a RAL. – Source

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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