The Federal Deposit Insurance Corp. has told Republic Bancorp, the main refund anticipation loan provider for Jackson Hewitt and Liberty Tax Service, that the bank’s RALs are “unsafe and unsound” without a debt indicator from the Internal Revenue Service.

Last August, the IRS said it would no longer provide the debt indicator, which indicates when a taxpayer owes outstanding debt to the federal government or for student loans or child support. The bank plans to appeal the FDIC’s ruling before an administrative law judge. The hearing won't take effect until April 18, after tax season, so any changes in the RAL program for Jackson Hewittt, Liberty and Republic won't occur until next tax season. The bank can also appeal the judge's decision.

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