“last nail in the coffin.”
the federal deposit insurance corporation has notified republic bank & trust of kentucky that the bank’s high cost refund anticipation loans are “unsafe and unsound,” effectively cutting off jackson hewitt and liberty tax, the second and third largest tax preparation chains in the country.
the fdic’s action follows a similar action by the office of comptroller of currency, which issued a regulatory directive on christmas eve against hsbc (h&r block’s ral partner bank) prohibiting that bank from making rals.
“this may be the last nail in the coffin for rals,” said adam rust, research director for community reinvestment association of north carolina. “if so, we will be glad to see the death of these high cost, high risk loans.”
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