I'm sorry, but your reasoning is quite flawed. Yes, the IRS eliminated the debt indicator thinking it would get rid of RAL products. It did not do that. That is because the banks, like Republic for example, developed new underwriting criteria to compensate for the debt indicator elimination. That is why you saw approval rates go down. There are other ways to determine the likelihood of a successful refund, such as prior year experience, credit reports, etc. Banks still sought to make the loans because they were EXTREMELY profitable and added a healthy amount to their bottom line. The "risky" talk was a false narrative put forward by President Obama's administration. Recall his involvement with ACORN, which protested the RAL products on non-banking grounds. It was not true that the loans were risky. That was a lie to accomplish a goal by the administration.