Civista Bancshares in Sandusky, Ohio, is taking a break from the income tax refund business.
The $3.7 billion-asset company said in a press release that it will remain on the sidelines for the 2024 tax season. The business had contributed $2.4 million of annual revenue from 2021 to 2023.
Civista is still grappling with fallout of the Treasury Department mistakenly sending $5.6 billion in stimulus payments to the company in 2021, which caused an increase in the volume of consumer complaints.
While the volume of complaints has diminished, the amount of information required by regulators to “close out” each complaint has “increased extensively,” Civista said.
“While our business partner has been responsible for gathering most of the information … it has become apparent that our regulators’ view of this program is changing,” the company added.