After its financing partners decided that they would be leaving the line of business, Jackson Hewitt Tax Service Inc. announced that it will stop offering "pre-season" refund anticipation loans.Unlike other tax-refund anticipation loans that are made after a taxpayer has filed their return, the pre-season loans were made to people before they filed, based on their pay stubs. In January, Jackson Hewitt paid $5 million to settle charges brought by California Attorney General Bill Lockyer, who was joined by consumer advocates in alleging that the high-interest loans were used to take advantage of low-income consumers.

The nation’s No. 2 tax preparer has been under fire since last week, when the Department of Justice announced that it was filing fraud charges against a handful of corporations running more than 125 Jackson Hewitt locations.

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