From the Sacramento Business Journal: "AG issues warning on tax refund loans"--
The state's attorney general is warning California taxpayers to avoid "refund anticipation loans," which some tax preparers dangle as "instant" cash, but which often come with high interest rates.
"These short-term loans are a classic too-good-to-be-true product," said Attorney General Bill Lockyer in a prepared statement. "They're not instant cash. They're instant, costly, unnecessary debt. To enjoy illusory benefits, consumers have to pay interest and fees that can drive the effective annual interest rate higher than 700 percent. What's worse, these loans are aggressively marketed to low- and moderate-income families who are most vulnerable to sales pitches that promise quick cash."
--Posted by Alton Illinois Workers' Compensation Attorney Evan Schaeffer of Schaeffer & Lamere, P.C.
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