Latest Posts
Home > Debt Articles > Say Good-Bye to Tax Refund Loans.

Say Good-Bye to Tax Refund Loans.

Tax refund loans or tax refund anticipation loans as they were known, were always a stinker. People would pay tax preparers a lot in fees just to get their refund a little sooner. But those days are thankfully on the way out.

This excellent article in the Washington Post explains how the loans grew and fell in a need for profits over logic.

Today, with the speed at which the Internal Revenue Service is processing tax refunds, there is no need for a ridiculously expensive tax refund loan.

These high-cost, short-term loans were designed to take advantage of the inefficiency of the Internal Revenue Service, plugging the gap between when taxpayers filed returns and when their refunds came through — very much like a payday loan. An overhaul of the federal tax code intended to put more money in the hands of low-income families sent demand for the advances skyrocketing. At the industry’s peak in the 2000s, more than 12 million people a year took out refund anticipation loans — and paid more than $1 billion in fees. – Read the rest here.

Hopefully the refund loan is now taking it’s last breath and on the way out. That’s great news for consumers who don’t want to get taken advantage of with high fees.

And if you run into someone still offering these loans or someone who is thinking they are a good idea, just ask them one question for me, “What the hell are you thinking?”

“Steve

Get Out of Debt Guy – Twitter, G+, Facebook

Need More Help?
Choice1
Choice2
Choice3

Get Out of Debt Free Hotline
debt settlement helpstudent loan help

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.