Comments on: Refund Anticipation Loans Are Ripoffs http://www.bargaineering.com/articles/refund-anticipation-loans-are-ripoffs.html personal finance blog with anecdotes, advice and commentary. Sun, 08 Nov 2009 17:21:36 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: joe banker http://www.bargaineering.com/articles/refund-anticipation-loans-are-ripoffs.html/comment-page-1#comment-73724 joe banker Fri, 23 Feb 2007 20:06:13 +0000 http://www.bargaineering.com/articles/refund-anticipation-loans-are-ripoffs.html#comment-73724 Jym, RALs are "a lot" cheaper than check cashers. A RAL is a loan. The average cost is a "one time 2-5% of the amount requested. The average loan is $3300 this year... the cost for it is about $120 (3.6%). As a loan it carries a risk.... checking cashing carries little risk. Another comparision is wiring money through Western Union (an American icon). Wire $3,000 (W.U. max) from the right coast to the left coast and it is $140 for their fastest method. That's a 4.6% fee on a non-risk transacation. You pay it all up front. Not to mention "their fastest" method? Either you wire money or you don't - it doesn't go any slower. Many people recieve wire transfers from friends and family from afar to cover unexpected expenses. RALs are even 6 to 7 times cheaper than payday loans. In fact, payday loan company receivables drop in February because many people use RALs to finally and quickly get out of their payday cycle. There are bad eggs in every industry Jym...even yours. We should always strive correct that. Equally, we should continue to educate people on financial matters. But that fact of the matter is many people are in positions where "waiting" for their money because its financially smart to do so, just can't. And neither you, the advocates or the IRS can lend them money as quick as they need it. Lets continue to make improvements where necessary but lets also stop advocating to remove something people will still need if RALs are banned. They go right back to unregulated back alley methods. They need the money. By the way, you should go to one of those firms you mention above and see just how many times they advise and disclose that RALs are loans and that there are other methods available to them - even free. Many times and in "large" print Jym..... There is more to the RAL story than just what the advocates claim. Jym, RALs are “a lot” cheaper than check cashers. A RAL is a loan. The average cost is a “one time 2-5% of the amount requested. The average loan is $3300 this year… the cost for it is about $120 (3.6%). As a loan it carries a risk…. checking cashing carries little risk. Another comparision is wiring money through Western Union (an American icon). Wire $3,000 (W.U. max) from the right coast to the left coast and it is $140 for their fastest method. That’s a 4.6% fee on a non-risk transacation. You pay it all up front. Not to mention “their fastest” method? Either you wire money or you don’t – it doesn’t go any slower. Many people recieve wire transfers from friends and family from afar to cover unexpected expenses. RALs are even 6 to 7 times cheaper than payday loans. In fact, payday loan company receivables drop in February because many people use RALs to finally and quickly get out of their payday cycle. There are bad eggs in every industry Jym…even yours. We should always strive correct that. Equally, we should continue to educate people on financial matters. But that fact of the matter is many people are in positions where “waiting” for their money because its financially smart to do so, just can’t. And neither you, the advocates or the IRS can lend them money as quick as they need it. Lets continue to make improvements where necessary but lets also stop advocating to remove something people will still need if RALs are banned. They go right back to unregulated back alley methods. They need the money. By the way, you should go to one of those firms you mention above and see just how many times they advise and disclose that RALs are loans and that there are other methods available to them – even free. Many times and in “large” print Jym….. There is more to the RAL story than just what the advocates claim.

]]> By: NatalieF. http://www.bargaineering.com/articles/refund-anticipation-loans-are-ripoffs.html/comment-page-1#comment-73506 NatalieF. Fri, 23 Feb 2007 09:17:54 +0000 http://www.bargaineering.com/articles/refund-anticipation-loans-are-ripoffs.html#comment-73506 Oh and that isn't even the half of it. On top of the fees and what not HSBC LOST my entire amount that was due to me. I recieved my IMAL fifteen minutes after i signed the paperwork in an H&R Block office...it has been over two weeks since my loan was paid off and the remaining ballance of nearly $5000.00 has been lost.... and no one from H&R Block Emerald Card or HSBC seems to know where it is and they are pointing the finger at eachother. Oh and that isn’t even the half of it. On top of the fees and what not HSBC LOST my entire amount that was due to me. I recieved my IMAL fifteen minutes after i signed the paperwork in an H&R Block office…it has been over two weeks since my loan was paid off and the remaining ballance of nearly $5000.00 has been lost…. and no one from H&R Block Emerald Card or HSBC seems to know where it is and they are pointing the finger at eachother.

]]> By: mapgirl http://www.bargaineering.com/articles/refund-anticipation-loans-are-ripoffs.html/comment-page-1#comment-63784 mapgirl Fri, 26 Jan 2007 04:25:52 +0000 http://www.bargaineering.com/articles/refund-anticipation-loans-are-ripoffs.html#comment-63784 Jim, did you know there are places that offer 200% interest auto title loans? BostonGal had an article link to it a few weeks ago. I found that completely shocking. 36% cap sounds crazy, but 200% is even crazier, AND PEOPLE STILL SIGN UP FOR THEM. Geesh... Jim, did you know there are places that offer 200% interest auto title loans? BostonGal had an article link to it a few weeks ago. I found that completely shocking. 36% cap sounds crazy, but 200% is even crazier, AND PEOPLE STILL SIGN UP FOR THEM.

Geesh…

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