This "Analysis" is Not Even Close

Reader comment on: HSBC, H&R Block, and Refund Anticipation Loans

Submitted by Clare CPA (United States), Dec 27, 2010 22:38

Bank charges have come down on these in the past 2 years or so but preparers have traditionally padded the bank fee by $100 or more, and gotten kickbacks of $50 or so from the banks. I've seen APR's in excess of 300% for a 2-week loan, on top of ridiculous tax prep fees for simple tax returns.

And this year IRS eliminated the "debt indicator." They've been ensuring at e-file that the banks will get their money in 10-14 days. There was going to be a high level of credit risk in the loans this year; that's what the OCC was reacting to.

H&R Block has been ripping people off for years with the assistance of IRS & the banks, who have also been well compensated. IRS agreed because it increased e-filing rates & cut their processing costs. Now that stops.

BTW, IRS is speeding up refund processing, and within a couple of years, 2 or 3 days will be more like it.

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Other reader comments on this item

Title By Date
This runs into a back to the future movement [121 words]LyleDec 28, 2010 00:04
⇒ This "Analysis" is Not Even Close [164 words]Clare CPADec 27, 2010 22:38
APRs of > 300%, Rip-Off Artists, etc., etc. [345 words]Britt the bankerJan 6, 2011 16:24
Interest free loans for the government [18 words]DavidDec 27, 2010 14:17
Previous comments [163 words]Brian HoffmanDec 29, 2010 17:40

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