| |
| | Model Refund Anticipation Loan Act with Commentary |
 | | Refund anticipation loans (RALs) are short term, high cost loans secured by and repaid from the proceeds of a consumer’s tax refund from the Internal Revenue Service (IRS). |
 | | The refund amount would be affected if, for example, the IRS disallows a deduction or if there is an intercept of the refund for child support, student loan, or other debt. |
 | | A refund anticipation loan also includes any sale, assignment, or purchase of a consumer’s tax refund at a discount or for a fee, whether or not the consumer is required to repay the buyer or assignee if the Internal Revenue Service denies or reduces the consumer’s tax refund. |
| www.consumerlaw.org /initiatives/refund_anticipation/ral_commentary.shtml (7692 words) |
|