Skip to main content

Tax Refund Loans

Tax Refund Loans - Are the tax gods conspiring against tax refund anticipation loans? It appears so.

The partnership between the nation's largest tax preparation firm and its refund loan lender is over.

These short-term loans, often referred to as RALs, have long been popular among impatient taxpayers who don't want to wait for the Internal Revenue Service to send them their tax refund checks. Instead, they get the loan, usually offered via a tax preparer, based on the amount of money they expect they'll receive from Uncle Sam once their tax returns are processed.

Ideally, when the refund money arrives, the taxpayer would take the cash and repay the RAL, which usually has a higher than average interest rate. But too many times, that doesn't happen.

Tax Refund Loans

In recent years, the IRS has taken steps to limit advertising of such tax-related financial products. This year, the tax agency also announced it would no longer provide RAL lenders with debt indicator data.

This information lets the tax preparer and RAL issuer know whether there are other claims on a taxpayer's refund, such as unpaid government loans or court-ordered child support payments. Without the debt indicator, many lenders are hesitant to issue the short-term loans.

And now, with the 2011 tax filing season almost upon us, RALs have taken another hit.

H&R Block has lost the services of the bank through which the national tax preparation firm offered RALs.

That bank, HSBC, has terminated refund anticipation loans for Block this week after being ordered to do so by Office of the Comptroller of the Currency.

This is just the latest RAL repercussion.

Tax Refund Loans

Comments

Popular posts from this blog

Urban Meyer Stepping Down

Urban Meyer Stepping Down - Well, it appears as if it’s deja vu all over again.

Less than 12 months after retiring and then un-retiring, Urban Meyer is apparently stepping down as Florida’s head coach. There’s no word on if he will be stepping back up tomorrow.

Urban Meyer Stepping Down

According to Todd Wright of Sporting News radio, GatorUpdates.com and AOL Fanhouse‘s Brett McMurphy Meyer will announce at a 5 p.m. ET press conference Wednesday that he is resigning/retiring as the Gators’ head coach. There are no further details available at this time, other than GatorUpdates reporting over the weekend that Meyer checked into a hospital the week of the UGA game and has been undergoing tests since.

Obviously, we’ll have more on this story throughout the day and well into the night…

Urban Meyer Stepping Down

Matt Cassel Undergoes Appendectomy

Matt Cassel Undergoes Appendectomy - The mystery of Matt Cassel missing practice Wednesday coupled with the Kansas City Chiefs promoting quarterback Tyler Palko has been solved.

The team has announced that Cassel underwent an appendectomy on Wednesday morning. The Chiefs say they expect Cassel to return to work this week. Returning to work and being ready to perform well in the team’s biggest game of the season on Sunday against San Diego are two different things. ESPN’s Adam Schefter is reporting the Chiefs are viewing Cassel as being questionable to play in the game.

Clearly, this is terrible timing. The Chiefs are 8-4 and would take a major step toward the playoffs with a win over the Chargers. Cassel has played very well for the past two months. If he can’t play, the brittle Brodie Croyle would face the Chiefs in his first action of the season. Croyle last played in Week 13 of the 2009 season.

Matt Cassel Undergoes Appendectomy

Cassel’s availability will come down to whether he…

100-calorie Packs Diet

100-calorie Packs Diet - Did you know recent studies show chronic dieters tend to consume more calories when foods and packages are smaller? Consumer behavior was observed in the study regarding "mini-packs," 100-calorie food packages that are marketed to help people control calorie intake.

The study revealed that one group that over-consumes the mini-packs is chronic dieters - individuals making a conscious effort in trying to manage their weight and food intake.

This shows that the distorted perception of small packages may actually undermine dieters' attempts to limit calories.

Consider this: Consumers perceive the mini-packs to be a generous portion of food - numerous small food morsels in each pack and multiple mini-packs in each box - while on the other hand, consumers perceive the mini-packs to be diet food. For chronic dieters, this perceptual dilemma causes a tendency to overeat, due to their emotion-laden relationship with food.

In a series of focus group studi…