H&R Block (NYSE:HRB) Loses HSBC (NYSE:HBC) Tax Loan Deal, Jackson Hewitt (NYSE:JTX) Soars

HSBC (NYSE:HBC) has been ordered by bank regulators to stop offering tax refund anticipation loans to H&R Block (NYSE:HRB)customers, which were offered to them based on what their expected tax return would be.

H&R Block CEO Alan Bennett blasted the decision by the Office of the Comptroller of the Currency, which ordered HSBC not to offer the loans.

Bennett said, "As a result of the OCC's decision, millions of taxpayers will be deprived of credit, or they will be forced to use higher-priced alternatives.

"The OCC's 11th hour timing will make it difficult for us to put alternative products in place at all of our locations in time for the early part of the 2011 tax season, but we will spare no effort to do so."

Shares of H&R Block plummeted on the news, falling to $11.77, down $0.92, or 7.25 percent, as of 12:43 PM EST. Shares of competitor Jackson Hewitt (NYSE:JTX), on the other hand, enjoyed a big boost, climbing to $2.37, gaining $0.60, or 33.90 percent.