Shame on You Jackson Hewitt

I understand that Jackson Hewitt is backed into a corner. At least half of their offices can't offer RALs because Santa Barbara Bank & Trust couldn't get their program past the regulators and JH couldn't find an alternative, but they need to be careful on how they spin the story. According to colleagues, clients are saying they are being told that "No one can do RALs," "RALs have been stopped," and "Obama stopped RALs". (RAL=refund anticipation loan)

I don't know what the powers that be at JH are telling their franchisees and staffs to say but this is getting to be a big game of gossip. I am sure that JH wants to spin this to keep as many clients as possible. And I know clients won't get the story perfectly right. But JH needs to make clear that they are the ones who can't do RALs. It's not an industry problem, it's theirs. They are the ones who built their business on the RAL clients. They are going to have a bad year. But if they make it to next year, JH will want these taxpayers back. And they could come back. From experience, I know they are the least loyal clients. Changing preparers each year if someone else can get them their money faster. But how many of the clients you are keeping by your blame game will you keep next year? The ones who find out, after their return is filed, that they could have gotten a RAL from someone else. They will no longer trust you and you will be the preparer of last choice.

Lies bite back. Jackson Hewitt is hurting their clients and competitors by their spin and outright lies. But they are running the risk of hurting the RAL industry by bringing more unwanted attention to the issue. People who will hear the stories and judge the industry by them. JH's behavior may keep them going to next year only to find that their base industry has been closed out from under them.

Jackson Hewitt needs to come up with a simple, truthful version of why some of their offices can't offer RALs. They need to get all their franchisees and staff on that story. It needs to be worded for easy understanding by clients and the people they tell. The gossip out now will hurt them, and much more importantly to me, the independents who offer RALs and are getting caught in JH's fallout.

Comments

[Jim Howard]

I'm a JH franchisee and I must say that you are very wrong in asserting that 'the powers that be at JH' are telling us to lie. JH corporate isn't perfect, but they certainly never, ever even suggest that we lie to our clients.

Since about 90% of JH locations are doing RALs now the more common lie comes from competitors claiming that we can't do RALs. Kind of like what you do in this post.

[ANGIE]

Well my location is not doing the RAL in Waterford Mi. They told me H&R Block was not doing them either. they lied about when I would get my money. I will not EVER use Jackson Hewitt again not only did they charge me to get my money quick and pay bank fees for what I could have e-filed my own taxes and got it deposited into my bank account befor I even get any money from you guys..Next year here I come H&R Block WILL NEVER USE YOU AGAIN...

[Amber]

Well, I was told that they were doing them...only to find out that no one is being approved. They took my 300+ dollars for something the IRS does for free. I only went in, because I needed MY money in the 1-2 days they promised. Thanks for praying on people that need their money fast.

[jere]

the problem is not the companies doing rals the problem is the people getting them. get your finances in order so you dont have to get a loan that screws you

[Valarie]

When I called the local JH office, I was told that they couldn't offer Refund Loans, but that it's a good thing. We're better off without them, as they leave a mark on our credit report, and most are being turned down anyway.
Ideally, we shouldn't need them, I agree! But for those that do, they deserve to know the truth about what is happening in the industry.
PS: H&R Block is no better, they just had the upper hand this year... check out your local independent tax preparation offices. They are the real professionals ~ a jewel in the rough!

[Chandler Arizona CPA]

These refund loans are a scams...your best bet is to deal with a CPA or an EA.

[LA CPA]

This seems like a very self serving post given that you compete with Jackson Hewitt, wouldn't you say?

[Rodney Johnson]

I was told by my local JH office that they in fact WERE doing RAL's this year, and by the commercials that they are putting out it all seemed legit. Excited to get my money back fast because of the bills piling on i decided JH would be the way to go. After three days i get a call from they're office telling me that i did not qualify for the RAL loan! I feel like i just been taken for a $300.00 ride. SHAME ON YOU JACKSON HEWITT!!!