The Internal Revenue Service's decision to stop indicating whether customers are entitled to claimed tax refunds used to collateralize loans is causing some banks to quit the business.

Without credit checks from the federal government, bankers fear these typically small-loan customers will take the money and run.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.