Article: Refund Anticipation Loans -- More Harm Than Help

Refund Anticipation Loans -- More Harm Than Help

If someone offered to loan you $2100 of your own money at interest rates of up to 222% you?d probably laugh at them and walk away; but, this spring, 1 in 10 Americans will do just that: they?ll borrow their own money at interest rates as high as 744% thru refund-anticipation or ?rapid refund? loans.



Refund anticipation loans are short term, high interest loans that commercial tax preparation services offer to taxpayers as a way for filers to get their tax refunds faster -- typically 1 to 2 days. The loans are secured by the filer?s anticipated tax refund and ordinarily last no more than 10 days.



Refund anticipation loans are commonly called as predatory lending by consumer rights advocates who say that they cost working poor taxpayers over $500 million a year....
 

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Refund Anticipation Loans -- More Harm Than Help

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