Bank Fights FDIC Decision To Nix Tax Refund Loans

Law360, New York (March 2, 2011, 4:38 PM EST) -- Republic Bank & Trust Co. sued the Federal Deposit Insurance Corp. on Monday in Kentucky over the agency's decision to curtail the practice of refund anticipation loans, which allow taxpayers to borrow against their federal income tax refunds.

The Louisville, Ky.-based bank brought the suit against the FDIC under the Administrative Procedure Act in order to force it to “play by the rules,” according to a complaint filed in the U.S. District Court for the Western District of Kentucky.

The FDIC has apparently decided to force...
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