BEWARE OF PROMISES OF FAST CASH THIS TAX SEASON
As W-2 forms hit the mailboxes of millions of Floridians, state Chief Financial Officer Tom Gallagher is warning consumers to be wary of refund anticipation loans - loans that offer cash up front by borrowing against your anticipated tax refund from the Internal Revenue Service (IRS).
today may sound attractive but signing up for quick refund services can be very
costly to consumers,” said Gallagher. “Carefully consider the fees and interest
rate associated with a refund anticipation loan.”
The Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) are the regulatory agencies that govern the activities of national banks and federal savings associations. National banks and federal thrifts are able to assign interest rates and fees from any state they are authorized to do business in, including those states that do not have caps on the amount of interest and fees charged.
anticipation loans are especially appealing to consumers who need money quickly
and don't want to wait the six weeks it can take to get a mailed refund from the
IRS. A pitfall, however, is that if the IRS turns down any of their claimed
deductions or credits, the consumer is still obligated to pay back the loan.
“Most consumers don't need refund anticipation loans and can get their hard-earned money back, in its entirety, by waiting a few extra days,” said Gallagher.
Consumers can contact the Florida Department of Financial Services' helpline at 1-800-342-2762 for additional information or assistance.