Refund anticipation loans, who needs them?

Many of the large tax preparers our offering “refund anticipation loans and services,” while in theory these provide a valuable service, they offer little to no benefit to the average taxpayer. With the IRS’s stated position that “taxpayers can get their refunds in as few as 10 days” (emphasis added) by using e-file and direct deposit, paying any fee to receive an anticipation loan just doesn’t make much sense. Especially when some of the “loans” are being marketed as the appropriate vehicle when you need your refund within “8 to 15 days.”

– The State Line Lawyer

Update: Here is a great article from MissouriFamilies.org explaining how the annual percentage rates on refund anticipation loans can range from 40% to 1,800%.  In case the embedded link doesn’t work: http://missourifamilies.org/features/financearticles/refundloan.htm.

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