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tax refunds

Senate debate on financial reform heats up

Now that the Senate floor debate on financial reform has started in earnest, supporters are ofering a number of amendments to strengthen the bill so that it better protects consumers from unsafe financial products and creates new rules to stop banks from getting so big that they could threaten the financial system.

Categories: Banking, CFPB, Credit Cards, Credit Reports, Gift Cards, Government Issued Cards, Mobile, Mortgages, Payments, Payroll Cards, Prepaid Cards, Student Loans
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Stay Away from RALs (Refund Anticipation Loans)

Tax season is in full swing–which means it’s time for that reminder to STAY AWAY from RALs, or Refund Anticipation Loans. They are sold as fast, easy, instant money options by tax preparers like H&R Block and Jackson Hewitt.

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High-Cost Credit

Are you in debt with small, short-term loans?

Categories: Credit Cards, Credit Reports, Student Loans
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Tax Refund Loans

Refund anticipation loans are loans secured by taxpayers’ anticipated tax refund. RALs cost 50 to over 500% effective APR and are repaid in less than two weeks by deposit of tax refunds from the IRS.

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Get your tax refund in advance? Maybe not.

With credit card interest rates going up, you may be considering an advance on your tax refund. Called a tax refund anticipation loan (RAL), this is not exactly an advance, but a loan, and millions of people are signing up.

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Monday’s tip from Money Mom: Don’t borrow your tax refund

Money Mom says: Stay away from offers to get your tax refund instantly. This is not a faster tax refund, it is a high cost loan.

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Consumer groups ask federal bank regulator to keep banks out of the business of abusive and high-priced “paystub” and holiday RALs

Refund anticipation loans (RALs) are made by tax preparers and banks prior to the tax filing season and before taxpayers have received their IRS Form W-2s. Since a taxpayer cannot file a tax return without a W-2, pay stub RALs are made based upon an estimated tax refund calculated from the consumer’s most recent pay stub.

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CU supports the “Free Internet Filing Act”

Consumer groups have long advocated for the ability of taxpayers to electronically file their returns without the need for a third party intermediary.

Categories: Mortgages
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CU joins other consumer groups in seeking full and fair study on refund anticipation loans

Letter to the IRS and Secretary of the Treasury regarding RALs.

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IRS letter asking for rule change on refund anticipation loans

Consumer groups ask IRS to change rule that could prevent volunteer tax preparers from warning consumers about the dangers of high cost refund anticipation loans.

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