Meta Financial to Manage Prepayment Loans for H&R Block
Meta Financial in Sioux Falls, SD is back in business with H&R Block.
The $ 5.8 billion asset Meta revealed in a regulatory filing Friday that it has a letter of intent with H&R Block’s Emerald Financial Services unit to provide financial products to clients of the preparation company. tax returns.
A deal reached would allow Meta to underwrite, create and fund advance loans for H&R Block during next year’s tax season. Meta said the deal could generate $ 15-20 million in net operating income in 2021.
Meta had a relationship with H&R Block as recently as 2017, although the tax preparation company ended the partnership the following year.
Meta’s announcement came a day after Axos Financial in San Diego revealed that H&R Block planned to end an Emerald partnership they had formed six years earlier. The two sides were unable to come to an agreement on lost fees after Axos became subject to trading caps linked to the Durbin Amendment.
Axos’ assets of $ 12.2 billion said it would lose about $ 21 million in administrative costs in 2021 if the Emerald relationship ended. He also warned that it could lose an additional $ 10 million in net operating income next year if H&R chooses another bank to run its Refund Advance product.