Customer Federation of America

Customer Federation of America

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

The NCLC/CFA 2012 Refund Anticipation Loan Report

Chi Chi Wu, National Consumer Law Center

Adding writer: Jean Ann Fox, Customer Federation of America

EXECUTIVE SUMMARY

Reimbursement expectation loans (RALs) are one or two week loans produced by banking institutions, facilitated by income tax preparers, and guaranteed because of the taxpayer’s anticipated taxation refund. RALs can hold triple digit APRs, and expose taxpayers into the dangers of unpaid financial obligation if their refunds try not to show up needlessly to say.

Here is the twelfth report that is annual the RAL industry through the nationwide customer Law Center and customer Federation of America. This really is additionally the year that is last these high-cost, high-risk loans is supposed to be made, at the least on a sizable scale by banking institutions. In December 2011, the final of this RAL-lending banks entered into a settlement with all the FDIC and consented to stop making RALs after April 2012. Leer más