Despite their commonplace nature, RALs are controversial. Supporters of the practice say the loans allow people access to funds immediately in cases of an emergency such as overdue medical bills, credit payments, and other debts while they wait for the IRS to process their income tax return. Processing of a tax return can take anywhere from one week to a month and a half. Fees for these loans are in line with industry wide standards for non-secured loans.[citation needed] Supporters of RALs may also contend that many individuals are not entirely truthful when completing their taxes, and that banks take a great risk relying on the word of an individual that his or her tax refund will be received in the amount claimed.
Source: http://en.wikipedia.org/wiki/Refund_Anticipation_Loan
1 comment:
When someone is dealing with money troubles it is easy to lose control and end up creating more debt while trying to pay off existing debt! If someone finds themselves in a situation were they are living outside their means they should get some advise from professionals who can help them with their problems and assist in implementing a debt consolidation programme.
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