Refund anticipation loan definition

What is a refund advance loan? Can I get a loan against my tax refund? A refund anticipation loan (RAL) is a loan that advances a person’s tax refund.

The loan is an equivalent amount to a person’s federal income tax refund and is repaid by the refund. These loans are provided by third-party companies, not by the U. Now, RALs come from private lending chains.

Think of it like payday lending. When a consumer agrees to an RAL, he or she accepts a sum of money from the lender. Those charges might be $ to $for a Federal refun plus additional fees for state refunds. Plus, you might have to pay additional charges, depending on how you get the funds (an additional $fee for a printing a check or providing a debit card is not unheard of).

They are offered starting in December through the end of the tax season in April. Taxpayers are generally charged fees and interest to obtain a RAL. Refund Anticipation Loans RALs are holiday tax loans and not YOUR actual refund.

Loan amount will be deducted via your actual tax refunds from Federal or State Taxing Authorities.

Tax Preparation Fee applies. A tax refund anticipation loan can be approved in a manner of minutes and the money accessible within a day or two. A borrower can apply for a refund anticipation loan from a bank or lender in order to receive money before the government sends out tax refunds.

You can e-file your return and receive your refund without a RT, a loan or extra fees. You must meet legal requirements for opening a bank account. For the purposes of this subchapter, the term refund anticipation loan means any loan a taxpayer may receive against his or her anticipated income tax refund. In other words, the tax refund anticipation loan is a loan against the expected income tax return of the Soldier. Some financial institutions will offer you a short-term loan based on your upcoming tax refund.

The government then sends your refund as a check to your financial institution who disperses the funds appropriately. However, you’ll likely still see these loans called RALs. With a refund advance, you borrow your own money, which is paid back when Uncle Sam issues your refund. The tax preparation company walks the consumer through filing their taxes, determines the amount of the refun and then offers to give the refund cash to the individual on the spot – minus a few fees. Some companies (typically tax preparation companies) offer what is known as a tax loan or a tax refund anticipation loan.

We Are Not Lenders or Brokers. The operator of this website is not a lender, nor a broker, agent or representative to any lender. Refund anticipation loans will be based off your income so you will never be asked for a copy of your income tax return. We do not make refund anticipation loans or credit decisions.

We can step in and help you get cash fast when you absolutely need it in one hour.

We understand your needs for quick money with our sacrificing time or peace of mind. Consumer loan fraud refers to fraud that is committed during submission of an application related to consumer loans with fraudulent information. Consumers can protect themselves against fraud by such simple common-sense measures as not revealing personal information to strangers.