How much does a Refund Anticipation Loans (RAL) cost?
Consumers pay three fees to get a RAL. Here is a listing of the typical fees: * Loan Fee ($100) * Administrative/Electronic Filing Fee ($30) * Tax Preparation Fee ($120) If a person does the math, they’ll quickly discover that a 10-day RAL on a $2000 loan refund carries an Annual Percentage Rate (APR) of 521%! If the IRS denies or delays a refund (due to the interception of unpaid parking tickets, student loans, child support, etc.) the individual is responsible to pay back the RAL to the lender.
