Republic Bancorp (RBCAA), Jackson Hewitt (JTX) Slammed As IRS Won't Support Tax Refund Loans

August 5, 2010 2:15 PM EDT

Republic Bancorp Inc. (Nasdaq: RBCAA) is under heavy pressure today after the IRS said it will stop electronically underwriting tax refund loans, which carry high interest rates.

Tax preparation firms like H&R Block Inc (NYSE: HRB) and Jackson Hewitt (NYSE: JTX) advertise these rapid refund loans.

"We no longer see a need for the debt indicator in a world where we can process a tax return and deliver a refund in 10 days," IRS Commissioner Doug Shulman said in a statement.

Shares of Republic Bancorp are down 20 percent today to $22.24. Jackson Hewitt is down 17 percent. H&R Block (NYSE: HRB) is down 2.5 percent.

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