Neither party has reported the arbitrator's findings directly. However, in its discussion of its fourth-quarter 2013 results, the Louisville, Ky.-based bank holding company report arbitration was concluded during the quarter and that no future legal expenses associated with the dispute were expected.
Both Jackson Hewitt and Liberty Tax Service in 2012 terminated their contracts with Republic after the bank was forced from the Refund Anticipation Loan business. However, Republic took action against only Jackson Hewitt and the disagreement was then submitted for arbitration.
Republic reported a $1 million increase in legal fees for the quarter ended December 31, stemming primary from the Jackson Hewitt issue. Republic says the new deal will increase annual revenue for 2014 and 2015 by about 12 percent over its 2013 net revenue of the Republic Processing Group, which handles the bank products for the tax preparation industry.Last modified on Monday, 20 January 2014