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Refund Anticipation Loans

Refund Anticipation Loans (RALs) take advantage of the urgent need for low-income families to get by day-to-day. When a family is expecting a tax refund, RALs promise to deliver the refund faster than the government—but only after pocketing part of that hard-earned refund for themselves. Low-income families need every cent of their refund. NCTC supports restricting marketing and lending at tax time and expanding options that encourage saving and using mainstream financial tools.

Page Talking Points: The Debt Indicator & the 2011 Tax Filing Season
The Internal Revenue Service (IRS) announced that it will no longer provide tax preparers and financial institutions with the debt indicator. This will have a large impact on the refund anticipation product industry and the taxpayers that use them. These talking points will help guide your program, volunteers, and clients as they navigate the changing tax preparation environment.
File IRS Debt Indicator Fact Sheet
The IRS issued a fact sheet for the field on the potential impact of their decision to eliminate access to the debt indicator and alternative options for taxpayers.
Link Tax Preparers Take A Bite Out Of Refunds
Nonprofit groups in Philadelphia and Durham conducted 17 “mystery shopper” tests of paid tax preparers. The results reveal an industry that varies tremendously in terms of providing consumers with information about refund anticipation loans (RALs), and in its overall quality of services. Provided by National Consumer Law Center.
Link Report on Refund Anticipation Loans
Report on an investigation to identify examples of where RALs are marketed and the types of information tax preparers disclose to potential RAL applicants. Provided by Government Accountability Office.
File NCTC Debt Indicator & RAL Talking Points
The Internal Revenue Service (IRS) announced that it will no longer provide tax preparers and financial institutions with the debt indicator. This will have a large impact on the refund anticipation product industry and the taxpayers that use them. These talking points will help guide your program, volunteers, and clients as they navigate the changing tax preparation environment.
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