IRS May Restrict Tax-Refund Loans

[fuzzis]

IRS may restrict tax-refund loans (http://www.msnbc.msn.com/id/22502057/)

Shares of H&R Block, Jackson Hewitt slump on news

...If adopted, the IRS proposal would limit tax preparers' ability to provide customers' tax return information to lenders that provide the tax refund loans.

Also known as refund anticipation loans, they tide over customers who expect to receive refunds but want their money immediately.

Many consumer groups complain about the loans' fees, which often equate to annualized interest rates of 40 percent to 60 percent. They also say the loans burden lower-income people, who often use them but can least afford them....

I've never quite understood the idea behind these loans. If you do an e-file early in the season and you have it direct deposited, you can have your refund in as little as two days.

[CircusRide]

By the way, you might expect delays in the processing of refunds this year. With the new tax bill that's been approved, it's going to require some adjustments and changes to the tax code etc, thus delaying the processing of returns.

[Bahlk]

I think somebody said it was something to do with the child tax credit or something.

[fuzzis]

I think somebody said it was something to do with the child tax credit or something.

Information on what's affected (http://www.foxbusiness.com/markets/industries/media/article/irs-says-returns-refunds-face-delays-filing-set-start_423185_15.html).

[CupcakeChic]

IRS may restrict tax-refund loans (http://www.msnbc.msn.com/id/22502057/)

Shares of H&R Block, Jackson Hewitt slump on news



I've never quite understood the idea behind these loans. If you do an e-file early in the season and you have it direct deposited, you can have your refund in as little as two days.

it's the same as the payday loans. instant gratification. uneducated and/or desperate people. it's the way our society works. i agree that it's equivalent to stealing, but the individual is informed of the terms. (like american idol contracts.) it's another example of the government getting involved where they shouldn't. i think this goes along with having to wear seatbelts and the smoking ban. we'd better watch it, more of our indivual rights are getting taken away everyday. pretty soon we won't be able to eat fried food, or watch tv...

[JimmyJam]

it's the same as the payday loans. instant gratification. uneducated and/or desperate people. it's the way our society works. i agree that it's equivalent to stealing, but the individual is informed of the terms. (like american idol contracts.) it's another example of the government getting involved where they shouldn't. i think this goes along with having to wear seatbelts and the smoking ban. we'd better watch it, more of our indivual rights are getting taken away everyday. pretty soon we won't be able to eat fried food, or watch tv...


And ARM/Interest-only mortgages....read the paperwork! Don't just sign it! Same with Student Handbooks...:smt118

[Conveyor Belt]

It's preying upon the poor. Notice how they're running ads now saying you don't even need a W-2, just bring in your last paycheck stub and that's it.

Working with poorer people, you have to realize that we're talking about $4000-$6000 checks, even with the $300 cut these agents get. God, I hope I don't need a car in the next few months. All the good used cars will be bought and dealers will spike up the price on the used one's to get this money.

Look for lots of jobs to open up soon as people quit their jobs when they get these checks.

[CircusRide]

It's preying upon the poor. Notice how they're running ads now saying you don't even need a W-2, just bring in your last paycheck stub and that's it.

Working with poorer people, you have to realize that we're talking about $4000-$6000 checks, even with the $300 cut these agents get. God, I hope I don't need a car in the next few months. All the good used cars will be bought and dealers will spike up the price on the used one's to get this money.

Look for lots of jobs to open up soon as people quit their jobs when they get these checks.


Actually, it's preying on the ignorant.