Tyler Morning Telegraph: BBB urges caution with refund anticipation loans
March 2, 2015
Refund anticipation loans are similar to payday loans in that they are short-term loans with high interest rates. While RALs are no longer available from banks, due to federal lending regulations, other tax preparers might still offer this costly and often unnecessary product.
The National Consumer Law Center (NCLC) found that the effective annualized rate for a RAL can range from about 50 percent to nearly 500 percent. In some cases, they have hidden administrative fees as well.
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