Comments on: Refund Anticipation Loans Suck

By: cheryl

cheryl — Thu, 29 Oct 2009 18:17:40 +0000

Does anyone know where you can get a loan against your taxes without going through H&R Block. They did our taxes but we need to send them in because we are filing late. We signed for direct deposit so the money will be there automatically. Any help will be greatly appreciated

By: Patrick

Patrick — Mon, 26 Jan 2009 14:18:43 +0000

JR Miranda: I agree, these RALs are awful. There are some states that are working to ban them, or at least cap the interest rate on them. I think that is a reasonable idea.

By: JR Miranda

JR Miranda — Mon, 26 Jan 2009 14:07:35 +0000

Low Income Family,

The tax companies (h&R Block, jackson Hewitt, etc…) are exploiting the poor and desperate. I work at a bank and I can tell you more than half of my customers don’t realize it’s even a loan. I hate to see people getting ripped off. The interest rate is usually 99.9%- that’s outrageous! If you e-file and get your refund direct deposited into your account, it only takes about 10 days. That’s it. I don’t make much money either, and I also have a family to support and look forward to the relief the tax return brings, but I’ll be damned if I’m going to be ripped off while trying to get my own money. I also file for FREE- no need to pay a corporation to do my taxes.

By: velmeezee

velmeezee — Wed, 14 Jan 2009 21:05:17 +0000

I have been filing my taxes with H and R block since 2000. I usually get the RAL and have the money within 48 hours. Last year the RAL prevented myself and my children from having to sleep in my car for weeks. I had a roomate who kept flaking out on his portion of the rent. The landlord got tired of accepting half rent and excuses until I could pay the rest on my next check. He didn’t evict me because he knew my situation and I’d always had my half on time. However the condition was that I had to move out by Jan 1st. So for 2 weeks we had to couch-hop with friends and family until I could get my RAL. It was horrible. The RAL was enough for me to put a deposit and first month on a place for myself and children SANS deadbeat roomate. So you can imagine I was hardly concerned with the fees associated with this product. This year I have to use my RAL money to pay off parking tickets my step-dad got on my car, and a ticket I got for accidentally driving with my headlights off. My drivers liscense will be suspended on Jan 25 if I don’t pay it, so I can’t afford to wait for a traditional refund check.

By: awisertaxpreparer

awisertaxpreparer — Tue, 30 Dec 2008 01:15:30 +0000

It’s hard enough to get the teachers to teach and the kids to stay in school long enough to read and write. Personal Finance? Hah! Civil Disobeiance 101 and Disrespect 101 is probably top priority.

By: awisertaxpreparer

awisertaxpreparer — Tue, 30 Dec 2008 01:09:02 +0000

If you’ve been juggling your finances for the last year, why can’t you juggle your finances 7 to 21 more days and put the $50 to $200 for the bank’s finance charges back in your wallet. The banks and the tax prep companies are bleeding you! I use to work for H & R and know that they charged an extra $37 for electronic filing to send your information to the bank, an exorbitant amount of money for their prep fees for their second-rate services, and their contract (probably partially-owned) bank makes about 300% APR on your gullibilty. P.S. That “friendly” tax preparer across the desk from you is getting a commission or bonus for signing you up for the RAL (and the Peace of Mind or Exteneed Guarantee too)and H & R Block gets a bonus as well. At least they’re happy. Who cares if you’re out a couple of hundred bucks, right? They doing you a great service!! So go to Jackson-Hewitt. I worked for them for one tax season and, yeah, they’re operating the same racket. Listen to the money experts or read money advise on the internet, and you will find that the RAL’s are rip-offs. Juggle a few more days and come out with a couple of extra hundred dollars in your pocket that you alledgely need so badly. You must not need it too bad if your willing to blow it on the banks and the tax prep office. But, hey, that what these bottom-feeders live for! They’re banking that you can’t juggle those bills around for up to three more weeks. Newflash!! I’ll bet (if I were a better – which I’m not) you’ll be juggling those bills around within a week after you get your refund in one – three days. Again!!

By: Patrick

Patrick — Tue, 23 Dec 2008 17:29:39 +0000

Christmas for my children: All payday loan companies charge outrageous fees!

By: Christmas for my children

Christmas for my children — Tue, 23 Dec 2008 05:02:37 +0000

If you think RAL’s are a rip-off to the low income family, take a look at the my cash now.com!! Let me know what you think about that.

By: ibdern

ibdern — Sat, 20 Dec 2008 04:35:35 +0000

It was yours to begin with. You just gave too much to Uncle Sam and he was nice enough to hold it for you in an interest bearing account where it would earn interest… for the government.

Not exactly correct. Alot of people who do RAL’s qualify for the sweet refundable credit called the “earned income tax credit (EITC)”. This is not their money they had on loan to the government interest free. This is free money from the government. Taxpayers earning less than $39,783 with qualifying chidlren can qualify for up to $4700 in a refundable credit without paying $1 in to Uncle Sam. (Other rules apply) but the point I am trying to make is:
It really wasn’t a loan by that taxpayer to Uncle Sam, just by all the other taxpayers who don’t qualify for the EITC.

By: Christmas for my children

Christmas for my children — Mon, 15 Dec 2008 19:07:01 +0000

We are a family of 6 who live pay check to pay check and it just would have been really nice to have had the opportunity to have had some money for christmas. Yes, I would pay 100$ to get my money so I could give my children a really nice christmas. But, it is what it is and we will make the best of it!