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Why were Refund Anticipation Loans (RALs) created?

April 26, 2017anticipation Loans RALS refund

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Why were Refund Anticipation Loans (RALs) created?

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Before electronic filing, when it would take several weeks to process a paper tax return, a RAL was an attractive timely option to a family in need of money. But with today’s electronic filing, refunds are available within 3-5 business days from the state and within 10 days from the IRS. The state and IRS offer the same speedy benefit without any cost.