Among the business practices that fall in the category of predatory loans are tax refund anticipation loans.
During tax season, many people who want their refunds quickly, resort to refund anticipation loans as a way to get their money in days rather than weeks.
Be careful and understand that there are options to borrowing your own money!
The Center for Responsible Lending warns, "Tax refund loans are short-term loans secured by a borrower's expected tax return. The typical interest rate on a tax refund loan can range from 50% to over 500% (depending how long it takes the IRS to process the tax forms)."
"While tax refund loans are advertised as a quicker way for taxpayers to receive their expected tax refund, in most cases these loans only speed up the process for a few days or less."
The United Way of Greater Dallas is sponsoring an effort to assist families making up to $50,000 a year with free tax help through the 'Earn It, Keep It, Save It' program. Free tax help and electronic filing can help you avoid avoid outrageous fees and interests associated with rapid refund loans.
If you live in Dallas, Texas, this flyer will help you find the nearest site to assist you. If you'd like to volunteer, you can get more information and register here.