Thousands and thousands of H&R Block Inc. customers who banked on short-term loans supported by their speculated tax refunds will not be having that option in this year as federal regulators forced Block's banking partner to stop offering the loans.

Block might loose out several millions of dollars in revenue, as a large percentage of its customers use refund anticipation loans.

RALs or refund anticipation loans are typically used by low-income customers who file their taxes in the beginning of the season, which are short-term loans supported by an expected federal income tax refund.

It's a severe blow for Block, which according to one of the analysts could lead to a loss of up to seven percent of its customers to competitors still offering the loans.

Shares went down by ninety cents equivalent to seven percent to hit eleven dollars and seventy nine cents in the trading at the midday session.

The largest tax preparer of the nation will keep on providing refund anticipation checks, as said by H&R Block in one of its statements. However those can take eight to fifteen days from the time of the taxpayer’s returns accepted by the IRS. That’s about the same period of time needed to get a refund from the IRS if one files electronically, as stated by Chi Chi Wu, a staff attorney with the National Consumer Law Center.

Federal regulators forced banking partner, HSBC Bank, of H&R Block to stop its high-interest lending practice this year charging high interests. However other firms, and fellow industry firms like Liberty Tax Service and Jackson Hewitt Tax Service stated that they would keep on offering loans.