Refund Anticipation Loan Quiz
Quick tax loans, or refund anticipation loans (RALs) target taxpayers who are in a hurry to get a tax refund. After going to a paid preparer to get a tax return filled out and filed electronically, taxpayers can borrow up to the amount of the anticipated refund immediately. When the refund check comes back from the Internal Revenue Service (IRS) it is reduced by the amount of the refund anticipation loan. Taxpayers using RALs get their money faster by only a week to 10 days or so (the amount of time they have to wait if they use electronic filing and direct deposit).
For more information:
Wu, C.C., & Fox, J.A. (2007). One Step Forward, One Step Back: Progress Seen in Efforts Against High-Priced Refund Anticipation Loans, but Even More Abusive Products Introduced. The NCLC/CFA 2007 Refund Anticipation Loan Report. National Consumer Law Center and Consumer Federation of America retrieved on January 30, 2008 from http://www.consumerlaw.org/issues/refund_anticipation/content/2007_RAL_Report.pdf
Wu. C.C. & Fox, J.A. (January, 2005). Picking Taxpayers Pockets, Draining Tax Relief Dollars: Refund Anticipation Loans Still Slicing into Low-Income Americans’ Hard Earned Tax Refunds. NCLC/CFA 2005 Refund anticipation Loan Report, National Consumer Law Center. Retrieved on November 23, 2007 from http://www.consumerlaw.org/initiatives/refund_anticipation/content/2005RALreport.pdf
Start the Refund Anticipation Loan Quiz here.
