ecb34691

[Black Bart]

Just noticed a sign at the local Jackson-Hewitt office: "The Money Now Loan." I protest about this unfair competition. Didn't your banks drop the pre-season loans entirely last year after (I assume) losing their collective shirts? Did they get a bailout and are all the J-H franchises in on it this time?

Regards, BB (poor boy independent practitioner)

[erchess]

BB I sympathize

There was a thread about this on the Drake board. After batting the idea around a bit we reached a consensus that even a month ago it was impossible to do anything about it for this tax season. However there was the suggestion that interested parties could ask their professional organizations to help the situation. There was debate with no proof offered either way as to whether there is a connection between Meta Bank which is underwriting the JH Product and SBBT. Obviously if if you think they are connected then that's a reason for an independent to try very hard to bank elsewhere. Of course if you don't think they are related or even if you do, then they may be your best option. It was also pointed out on Drake that HRB is doing the same sort of thing with their own bank. Must be nice.

[ecb34691]

BB - currently it's a Line of credit of either $300 or $500 on to a VISA reloadable card. It's based on estimated refund and a credit check and is being funded by Meta Bank. Not sure about their ties to other banks as one thought to SBBT because in Florida we are serviced by Republic Bank

That office has his Money Now sign up way to early. Thats can't be done until Jan. 16 when you can file you return.

[MLINDER42]

Money Now Loan

With HRB you must have taken last years refund on their credit card and still have it active to be eligible for the loan. These things by JH and HRB show to me they are worried about competition and their high fees.There is no promise by the borrower to have tax return done when they take the loan. The other RAL banks are not cross collecting on these loans.

[Black Bart]

Thanks much, ecb34691.

BB - currently it's a Line of credit of either $300 or $500 on to a VISA reloadable card. It's based on estimated refund and a credit check and is being funded by Meta Bank. Not sure about their ties to other banks as one thought to SBBT because in Florida we are serviced by Republic Bank

That office has his Money Now sign up way to early. Thats can't be done until Jan. 16 when you can file you return.

I appreciate it -- and don't worry about anything 'cause I promise not to pull all my holdings from any of these banks and force them into bankruptcy.

[Black Bart]

Thanks for the sympathy, EC

There was a thread about this on the Drake board. After batting the idea around a bit we reached a consensus that even a month ago it was impossible to do anything about it for this tax season. However there was the suggestion that interested parties could ask their professional organizations to help the situation.

Just curious, but what is it exactly that anybody could do about it? It's not against the law to make such loans, is it?

;;;no proof offered...as to whether there is a connection between Meta Bank which is underwriting the JH Product and SBBT...if you think they are connected then that's a reason for an independent to try very hard to bank elsewhere...

Good thinkin' erchess, I plan immediate retaliation for this unfair and underhanded strategy. I'm callin' both of 'em up right now and movin' my overdrafts somewhere else.

Note to ecb34691 -- Sorry, but after readin' erchess' recommendation I feel I must renege on my promise not to withdraw all financial holdings from those banks. Gimme a holler if you need a job when they go under.

[erchess]

What Can We Do

BB you are too funny. I assume you know that I don't think you have a personal account at any bank that makes RALs or that if you did they would care that you moved it. The question is what bank are people dealing with when they get a RAL or Perc at your office. Now I personally don't think that SBBT or any other bank that would like to be your bank for RALs and Percs is connected to Meta bank. But if any is and it realized that it had lost half of its small offices because of its connection to Meta and JH it would sever that connection and make big apologies because collectively we matter more to its bottom line than do JH and Meta. Our professional associations could find out the truth of the connection issue and if appropriate mobilize us to leave a given bank. Our professional associations could lobby Congress and the banks to even out the issue at hand by either eliminating the pre filing loans or making them available through all preparers who want to offer them.

So yeah the bottom line as far as I am concerned is that those of you who need or want to offer RALs can either sit around and do nothing or you can reach out to each other through professional organizations which will each do about anything the leadership knows that most members want.

It doesn't matter much to me. I don't offer bank products. I can't be bothered to print checks for people so I go after a clientele that has plenty of money and therefore doesn't hassle me over the speed of their refunds if they even get refunds. They understand that the speed of their refund is not under my or any bank's control and it will arrive when it arrives. They do with it what they always do with "found money" which is stick it in long term savings or investments.

[Black Bart]

Oh, alright.

BB...I assume you know that I don't think you have a personal account at any bank that makes RALs or that if you did they would care that you moved it.

Yeah, I know that and I'll quit pickin' atcha -- I've been goin' a bit overboard lately, graspin' at straws for laughs.

Originally Posted by erchess
The question is what bank are people dealing with when they get a RAL or Perc at your office. Now I personally don't think that SBBT or any other bank that would like to be your bank for RALs and Percs is connected to Meta bank. But if any is and it realized that it had lost half of its small offices because of its connection to Meta and JH it would sever that connection and make big apologies because collectively we matter more to its bottom line than do JH and Meta. Our professional associations could find out the truth of the connection issue and if appropriate mobilize us to leave a given bank. Our professional associations could lobby Congress and the banks to even out the issue at hand by either eliminating the pre filing loans or making them available through all preparers who want to offer them.

Actually, I was just carryin' on some with ecb34691 for the fun of it -- I really don't care if JH hands out pre-season loans or not 'cause I don't see a whole lot of difference about when the client gets a loan, be it in-season RALs or out-of-season Money Nows. I figure many will never even go back to the loaner and or even file a return. If you could see some of those clients (I have a ringside seat), you wouldn't want them to come to the office in the first place, much less come back. Besides, I wouldn't mess with all that loan business headache if I could; I can't imagine how much trouble it would be to keep track of who owed me, borrowed what, and so on -- taxes alone are a handful nowadays.

I don't think preparers will mobilize -- many RALers are unaffiliated with pro organizations and besides, it's quite a bit of trouble to get set up and familiar with a new bank -- not as bad as switching software, but a definite pain and I'd have to be awfully mad to leave mine (I'm thinkin' others would feel the same way). Just a guess, but I figure banks would lose lots more money dropping a solid block of JH franchisees rather than a scattered bunch of independents.

...I go after a clientele that has plenty of money and...they do,,,what they always do with "found money" which is stick it in long term savings or investments.

I know just what you mean because my clients feel the same way about long-term investments -- they go straight to Wal-Mart and pay down on at least a 60 or 90 day Christmas layaway.

Okay, okay...I know I promised...I'm quittin'......

Best regards, BB

[MLINDER42]

Changing banks

I was with HSBC for years had no problem switching last year did not like the service of the new bank and am going to a new one this year.Hope not to have any problems.

[erchess]

Three

I still think BB ChEArs and I would give the Three Stooges a run for their money. This board is where I begin and end every day and sometimes I get in one or more visits in between.