Americas Independent Movement

Once again the Obama government is helping out low income people, By screwing then to the wall. Big government means BIG charges to pay for the free help. Here is a story we picked up from Liberty tax.

IRS Decision to Terminate the Debt Indicator
Liberty Tax Service CEO and Founder John Hewitt reacted strongly to the IRS announcement on August 5th that the debt indicator will be discontinued. This action signals a drastic change for Refund Anticipation Loan options. The decision means that the IRS will not disclose to financial institutions or tax preparers if a taxpayer owes the government any money that will be deducted from their expected refund. This step hinders a financial institution’s approval process for a customer who applies for a Refund Anticipation Loan. Without the debt indicator, banks that provide refund loans must use other methods to financially screen clients. As a result, many people who would otherwise receive the loan may be denied. Also, the fees charged to customers who do receive the loan could be considerably higher because of the additional underwriting risks.

“It’s a disappointing decision for consumers. The demand for Refund Anticipation Loans is customer-driven. We are emerging from the greatest financial downturn since the Great Depression. This really isn’t the time to take financial options away from those who choose them, and more importantly need them,” said Hewitt from his corporate headquarters in Virginia Beach, Virginia.

Liberty’s Executive Team will be meeting with originating banks immediately to discuss the ramifications of this decision. Liberty has been assured by Republic Bank that a RAL product will continue to be available to our Franchisees. Liberty continues to speak with other banking partners with a goal of having at least two provider banks for the upcoming tax season. Stay tuned to your “Team Liberty” newsletter for more updates on banking announcements and changes for the upcoming tax season!