A message from Alan Bennett, CEO of H&R Block
As we shared with you earlier this month, the IRS announced it will eliminate the debt indicator for refund anticipation loan lenders. The debt indicator is an essential underwriting tool that banks use when considering whether to loan money to clients.
We strongly believe these consumers should have year-round, real-time access to their credit information to assist them in all their financial decision-making – including obtaining affordable financial products.
Kate Fulton, SVP-Government Relations, and her team are reaching out to influencers and working with our communications team to get our messaging out publicly against this action. We also are working with our industry counterparts to address this issue head on.
How you can make a difference:
There is something each of you can do to help our valued clients and improve their choices for credit. We have drafted a letter aimed at legislators to help educate them on this issue and to ask for their support to reinstate the debt indicator so that we can continue offering products and services taxpayers want at affordable prices.
We have automated the process to make it easy for you to voice your concern. By following the simple steps outlined below, your letter will automatically be sent to your elected officials. Here is all you have to do:
- Log into the myBlock Company Login at https://myblock.hrblock.com/pps/guest/Login
- Select the myCompany tab then click the Government Relations link
- Click on the “Take Action” Button located on the homepage of the Government Relations site
- Click on your respective letter based on your role.
- Type in your name and address where indicated so that it will automatically locate your congressman.
- The letter will automatically go to your congressmen and senators to weigh in on this issue as a constituent and a voter.
Well, the other side of that coin is that people are also getting ripped off my companies like H&R Block, who charge exorbitant interest rates on Refund Anticipation Loans and other products that really have nothing to do with income tax preparation. When I worked for Block I can remember seeing rates as high as 400% or more. Granted, these are very short-term loans, usually only days or weeks, but they are pretty questionable from an ethical standpoint.
I’m wondering if the dropping of the debt indicator by the IRS is not a prelude to some kind of banning of these RALs and rapid refunds and other dubious products. Block is clearly acting in its own interest in opposing this move, not necessarily in the interest of taxpayers.
F. William (Bill) Brough, MBA, PB
Tax Curriculum Specialist