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Refund Anticipation Loans
The IRS stopped providing a debt indicator to the banks starting with tax year 2010.
This completely changed the bank products available for tax year 2010.
Chase Bank dropped out of the RAL/RT program completely. HSBC Bank never obtained approval to offer RALs.
River City Bank and Republic Bank offered limited RAL's with the balance of the taxpayer's refund being a refund transfer check.
Loan approvals were only 30% even on the limited RAL amounts.
Before the end of this tax season, the FDIC obtained a court order against Republic Bank and River City Bank
requring them to cease offering RALs
(even with the limited amounts) due to the risk involved without the debt indicator.
These court orders are now being appealed.
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