THE PARTY’S THROUGH FOR QUICKIE income tax LOANS: BUT TRAPS CONTINUE FOR UNWARY TAXPAYERS

The NCLC/CFA 2012 Refund Anticipation Loan Report

Chi Chi Wu, National Customer Law Center

Adding author: Jean Ann Fox, Consumer Federation of America

EXECUTIVE SUMMARY

Refund anticipation loans (RALs) are one or two loans made by banks, facilitated by tax preparers, and secured by the taxpayer’s expected tax refund week. RALs can hold triple APRs that are digit and expose taxpayers into the dangers of unpaid financial obligation if their refunds usually do not show up not surprisingly.

Here is the twelfth yearly report on the RAL industry through the nationwide customer Law Center and customer Federation of America. Continue reading →