IRS changes Competitive Analysis of the Industry Explanation of Federal Direct products Prepaid Debit Cards Aspects of Tax Cash Now Loan Product How

Transcription

1 IRS changes Competitive Analysis of the Industry Explanation of Federal Direct products Prepaid Debit Cards Aspects of Tax Cash Now Loan Product How to market the Tax Cash Now Loan Question & Answer

2 2010 IRS Changes Removal of the debt indicator Second time it has been removed 1993 for multiple years then reinstated Is it ever coming back???? Administration influence No longer need to incentivize the push for e-filing

3 2011 Changes All Banks forced out of the RAL market with the exception of Republic Bank Corp Issued a Cease & Desist order by the FDIC Feb $2 Million fine levied in Mid December 2011 the Cease & Desist was extended to allow for 2011 tax year products with full withdrawl withdrawal from the industry as of April 18 th 2012.

4 H&R Block Industry Analysis HSBC was their primary lender and they were forced out by the Comptroller of the Currency last season Preseason emerald card loan up to $1, day refund loan via check or prepaid debit card Jackson Hewitt 80% of offices will have 1-2 day loan up to $1, day refund loan via check or prepaid debit card Liberty 1-2 day loan up to $1, day refund loan via check or prepaid debit card

5 Federal Direct Bank Products Bank Product 5-14 day refund via check or prepaid debit card Checks Most common bank product refund form Allows for full cash out options for your clients df Prepaid MasterCards Instant Issue or delivered to Taxpayers home, refund deposited to their cards in 5-14 days Must register in advance to get Instant issue cards for your office $10 fee for instant issue cardstock No need for them to come back to your office Limitations ATM maximum withdrawals limitations ATM Withdrawal fees

6 Bank Product Registration Bank Registration Published Cutoff is January 11 th You must have an EFIN to apply to offer Bank Products Check Stock will ship hours after applications are approved. Must have SSN & DOB on file for application Copy of picture ID EFIN acceptance letter or e-services summary page

7 Choosing a Bank Product Desktop

8 Choosing a Bank Product Desktop

9 Choosing a Bank Product - IPO

10 Choosing a Bank Product - IPO

11 Choosing a Prepaid Card - IPO

12 Completing the Bank Page Example of in software prep Prepaid Card Selection

13 Compliance Paperwork

14 Check Release Form

15 Bank Products Getting Paid You are paid out every Monday for your prior weeks funded returns (Saturday Friday) Payments are made via ACH on Mondays, and you have access to funds Tuesdays Reporting will be moving to an online format available through your partner portal. New Functionality Interactive Date Range Selection No longer requires Microsoft Excel to view Accessible from anywhere you have an internet connection Graphical overview of weekly return production Have you sent in your ACH Authorization Form???

16 Federal Direct LOAN Options Tax Cash Now Loan up to $1,500 Can be used as preseason loan immediately Can be marketed throughout the tax season as a RAL replacement if you clients need cash Now! Requirements to be discussed shortly Two different lending options: Traditional Tax Cash in 1 Hour Ameriloan

17 Loan Product Details Individual Loan NOT based or linked to the clients tax refund in any way! You do NOT make any $$ for promoting or selling this product. The client is responsible for repayment of the loan. APR and fees vary upon loan amount and term. Loan is not credit based, but based on ability to repay Loan approval amount varies from $100 to $1,500.

18 Important Loan Details These loan products are between your client and the third party lender that they choose to use. You are not a recognized or licensed loan provider You are not able to administrate the repayment of the loan once it has been initiated All questions and support needs must be directed by the client to the lender. Federal Direct has no approval authority with these lenders

19 Applicant Requirements Must be employed or receiving benefits Checking Account (prepaid debit cards do not work) Valid State ID or Drivers License Account (must have access to it)

20 Marketing PreSeason Loan Bring in your pay stubs Stress coming back to file During Season Fast Cash Available Up to $1,500 Not Credit Based!

21 Operations of the Loan You need to attach the loan application with tax preparation Preseason loan: Estimated return based off of paystubs Bring in all info During Season Same day or 1-2 day loan : File Taxes first with a bank product & Submit Apply for loan second

22 Paperwork & Application Verification: employment/income bank account information Lenders Documents TILA Application Disclosure Statement

23 Educating Your Customer The customer is responsible for loan repayment Whether they get all, part, or any of tax refund Fees are accrued weekly or bi-weekly depending on the lender APR and fees depend on loan amount and term The Lender communicates directly with the customer Text Phone

24 Navigating the Tax Cash Now Loan Walk through the Partner Portal app process

25 Questions?