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SBBT cuts off RALs, will sell tax division

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Bob Sandler

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Dec 25, 2009, 1:43:57 PM12/25/09
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Santa Barbara Bank & Trust has been forced by regulators to
stop offering RALs. This is an immediate serious problem for
Jackson Hewitt, and anyone else depending on RALs from SBBT.
SBBT is trying to sell it's tax division that provides RALs
and refund transfer services.

Bloomberg news:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aC5aD_5diAck

Press release issued by Pacific Capital Bancorp (parent of
SBBT):
http://www.sec.gov/Archives/edgar/data/357264/000115752309008742/a6127026ex99_1.htm

Form 8-K filed by Jackson Hewitt:
http://www.sec.gov/Archives/edgar/data/1283552/000119312509259772/d8k.htm

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Mark Bole

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Dec 26, 2009, 10:29:21 PM12/26/09
to
Bob Sandler wrote:
> Santa Barbara Bank & Trust has been forced by regulators to
> stop offering RALs. This is an immediate serious problem for
> Jackson Hewitt, and anyone else depending on RALs from SBBT.
> SBBT is trying to sell it's tax division that provides RALs
> and refund transfer services.

Interesting story, especially given the generally dim view of RAL's
taken here and elsewhere.

I saw this today (12/26) from a site purporting to belong to Pacific
Capital Bank https://cisc.sbbtral.com/ (the SSL server certificate seems
to check out OK):

"December 26, 2009
"To all transmitters and tax preparers,
"As you may have seen in recent public announcements, Pacific Capital
Bank (�PCB�) has entered into a letter of intent to sell the E-Filing
Financial Service Division of Santa Barbara Bank & Trust (the �Tax
Division�). [...] We anticipate no interruption in service and will
continue to maintain a competitive program. Updates will be released and
posted here at this website as information becomes available. [...]"

I know both Intuit and H&R Block (the two largest commercial tax prep
firms in US) have partner banks they work with for various RAL and
prepaid debit card products, and the quote above references
Jackson-Hewitt. Is there a list anywhere of the big players (banks) in
either the RAC (refund loan) or prepaid debit card (refund direct
deposit) industry?

-Mark Bole

Brew1

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Dec 28, 2009, 7:49:06 PM12/28/09
to
On Dec 26, 10:29�pm, Mark Bole <ma...@pacbell.net> wrote:
> Bob Sandler wrote:
> > Santa Barbara Bank & Trust has been forced by regulators to
> > stop offering RALs. This is an immediate serious problem for
> > Jackson Hewitt, and anyone else depending on RALs from SBBT.
> > SBBT is trying to sell it's tax division that provides RALs
> > and refund transfer services.
>
> Interesting story, especially given the generally dim view of RAL's
> taken here and elsewhere.
>
> I saw this today (12/26) from a site purporting to belong to Pacific
> Capital Bankhttps://cisc.sbbtral.com/(the SSL server certificate seems

> to check out OK):
>
> "December 26, 2009
> "To all transmitters and tax preparers,
> "As you may have seen in recent public announcements, Pacific Capital
> Bank (�PCB�) has entered into a letter of intent to sell the E-Filing
> Financial Service Division of Santa Barbara Bank & Trust (the �Tax
> Division�). [...] We anticipate no interruption in service and will
> continue to maintain a competitive program. Updates will be released and
> posted here at this website as information becomes available. [...]"
>
> I know both Intuit and H&R Block (the two largest commercial tax prep
> firms in US) have partner banks they work with for various RAL and
> prepaid debit card products, and the quote above references
> Jackson-Hewitt. �Is there a list anywhere of the big players (banks) in

> either the RAC (refund loan) or prepaid debit card (refund direct
> deposit) industry?
>
> -Mark Bole
>
HSBC is H&R Block's bank for RAL's and RAC's (the H&R Block bank is
not allowed to handle RALs), they stopped dealing with Jackson-Hewitt
in 2007. H&R Block bank does handle the prepaid debit cards that are
issued. I found the following article quite fascinating (on refund
loans and what kind of cut the tax preparer company got):

http://seekingalpha.com/article/170806-h-r-block-stars-are-aligning

Disclaimer: I bought 100 shares of HRB after reading the article

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