HSBC, JP Morgan Chase, and Santa Barbara Bank &
Trust, all of which offered variations of the pre-tax season refund loan,
announced last March that they would not longer offer these loans through their
tax preparation partners.
Woodstock Institute and other fair finance organizations
throughout the country have worked to protect the assets of lower-income people
during tax filing season as those filers are continually bombarded with new,
high cost consumer credit options. The
recent announcement marks a significant victory and is a step towards
substantive reform of an industry that continues to siphon millions of dollars
from lower-income taxpayers every year by making expensive and unnecessary
loans to low-income taxpayers.