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COPYRIGHT 2001 The Dallas Morning News
Byline: Pamela Yip
Feb. 25--You're getting a tax refund. A little extra cash falling like manna from heaven?
Not really. It's your money. You earned it. It was just on loan to Uncle Sam, interest-free.
But now you want it. And you want it yesterday.
The lure of "quick refunds" or "fast cash," otherwise known as a refund anticipation loans, can be tempting. But if you're not careful, you could end up paying a high price just to get your own money back.
Legal and personal finance experts say the loans aren't as good a deal as they may seem.
"I don't think people go into them for any other reason than desperation...and desperation is never a reason to get a loan," said BettyeBanks, senior vice president of education at Consumer Credit Counseling Service of Greater Dallas. "They don't think of the interest, and it always costs more than the loan."
Refund anticipation loans are offered by financial institutions and finance companies through professional tax preparers such as H&R Block and Jackson Hewitt Tax Service.
But consumers need to remember that refund anticipation loans are just that...
Read the full article for free courtesy of your local library.
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