The tax anticipation refund loan is basically a method by which a tax filer can receive his refund back immediately. So basically in this the consumer is guided by the tax preparation entity through filing ones taxes. The amount which has to be refunded is determined and then the individual is offered the refunded cash instantly. Although here they will be deducting some amount of fees. And in return when the refunded cash is issued by the Internal Revenue Service the company gets to keep it.
Who are the main targets of the refund anticipation loans and why?
Now these RALs are in no case considered a wise decision in financial aspects. Also since they generally aim to find people with lower income individuals and families, these types of loans are often seen as predatory.
There are some really strong reasons because of which RALs target such people.
Now people who have low income brackets are often found dealing cash flow issues. Here the tax refund is then seen as a great chance to avoid those issues for quite some timeContinue Reading