Customer Federation of America

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

The NCLC/CFA 2012 Refund Anticipation Loan Report

Chi Chi Wu, Nationwide Customer Law Center

Adding writer: Jean Ann Fox, Customer Federation of America

EXECUTIVE SUMMARY

Refund expectation loans (RALs) are 1 to 2 week loans created by banking institutions, facilitated by taxation preparers, and guaranteed by the taxpayer’s anticipated taxation refund. RALs can hold triple digit APRs, and expose taxpayers towards the dangers of unpaid financial obligation if their refunds don’t show up needlessly to say. Continue reading Customer Federation of America