A Sioux Falls-based financial services company said Thursday it had lost a significant chunk of business.
Meta Financial Group said late Thursday it was “advised” it would no longer be the provider of interest-free Refund Advance loans for H&R Block tax preparation customers in 2018.
The end of that relationship will cost Meta $12 million in net earnings during fiscal year 2017, the company said, preliminarily estimating a pre-tax impairment charge in the range of $9 million to $11 million.
“We are disappointed to hear that H&R Block will not be offering 2018 tax season loans through MetaBank. However, based on the current progress of negotiations with new tax partners and expanded relationships with existing tax partners, we believe we will be able to recoup a significant portion of the lost earnings associated with this program,” said J. Tyler Haahr, Chairman and CEO of Meta.
The news comes one day after Meta announced its third quarter results, touting a 10 percent rise in profits as another step in a “record-breaking year.”
Meta Financial is the parent company of Meta Payment Systems and MetaBank.
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