• Home
  • News
    • Politics & Government
    • Business & Economy
    • Crime / Courts
    • Health / Medicine
  • Sports
    • High School Sports
    • Radio Iowa Poll
  • Affiliates
    • Affiliate Support Page
  • Contact Us
    • Reporters

Radio Iowa

Iowa's Radio News Network

You are here: Home / News / Expert warns Iowans against refund anticipation loans

Expert warns Iowans against refund anticipation loans

January 1, 2007 By admin

If you’re thinking ahead to doing your taxes, beware some great offers that are already in the mail. Debra Moore in the Iowa Attorney General’s consumer protection office says there’s little to gain from Refund Anticipation Loans. Also known as R-A-L, it’s a loan against your expected tax refund. When you’re making out your income-tax forms, some tax preparers may suggest you borrow against that refund before you get it. She says a quick look at the reality makes it clear that’s not a good deal. The interest rate on that “loan” will be extremely high, anywhere from forty to 700-percent APR. If you’ve filed electronically, it won’t even save much time since your refund will arrive in seven to ten days. When they say you’ll get a refund-anticipation loan immediately, actually she says, you’ll pay “high interest for a short turnaround.” There’s a new pitch, in which predatory lenders contact you to say they’ll make that kind of loan even before you start to do youtr taxes. They’ll propose a “pay stub” refund-anticipation loan, borrowing money before you know for sure what your refund will be based on what appears to have been withheld from your pay this year. In fact, taking that refund for granted could get you in trouble even bigger than the high interest rate. You may not get the tax refund you expecting, because money’s taken out of your withholding for a school loan, child support or other collection. If you take out a refund-anticipation loan, you could be stuck paying back more than you get as a refund. Moore says it’s a good reason to e-file so you’ll get the refund as fast as possible.

Share this:

  • Facebook
  • Twitter

Filed Under: News Tagged With: Taxes, Telemarketing

Featured Stories

Bill would limit placement of solar arrays on farm ground

Marquette casino moving to land, leaving only 2 casino boats in Iowa

Reynolds signs her ‘school choice’ bill into law

Governor Reynolds touts 2024 Iowa Caucuses in Inaugural Address

University of Iowa grad presiding over U.S. House Speaker vote

TwitterFacebook
Tweets by RadioIowa

No coaching changes coming for Iowa football

Iowa State names new receivers coach

No. 2 Iowa visits No. 1 Penn State in wrestling dual Friday night

Iowa’s Clark brings increased exposure to women’s basketball

No. 18 Iowa State women visit TCU

More Sports

Archives

Copyright © 2023 ยท Learfield News & Ag, LLC