Liberty Tax 124% interest Loan (RAL)....Phx AZ

[AZ-Tax]

http://www.azfamily.com/news/consumer/If-tempted-by-ads-promising-money-before-refunds---theres-a-catch-116893158.html

[kpangelinan]

That's not bad....

http://www.azfamily.com/news/consume...116893158.html

I've seen 300-500% in my area.

[thomtax]

Not taking a side either for or against RALs, but these figures just prove how misleading statistics can, and usually are, when not given in the full context. And I don't give RALs.

The loan is usually only for 9-14 days. And even if the charge is only $39, when you multiply that out to be for 365 days, it looks horrible. But it is still only for $39.

In Arkansas things are even worse. Our attorney general, who is obviously preparing for a run for governor at the next election, figures that even though the client has signed a "consent to disclose", a "consent to use tax info", a contract, been given a sheet showing all the figures is still too stupid to know that fees are coming out of the refund. So the state now requires a signed disclosure sheet telling them that they can file without these fees just by paying the prep fee up front. And that if any fees are charged to these poor people, then all other clients must be charged that fee, even though they don't use the service. It's just not right to pick on these poor down and out people that are getting $10,000 of your tax money without having paid in a cent.

LT

[kpangelinan]

Not taking a side either for or against RALs, but these figures just prove how misleading statistics can, and usually are, when not given in the full context. And I don't give RALs.

The loan is usually only for 9-14 days. And even if the charge is only $39, when you multiply that out to be for 365 days, it looks horrible. But it is still only for $39.

In Arkansas things are even worse. Our attorney general, who is obviously preparing for a run for governor at the next election, figures that even though the client has signed a "consent to disclose", a "consent to use tax info", a contract, been given a sheet showing all the figures is still too stupid to know that fees are coming out of the refund. So the state now requires a signed disclosure sheet telling them that they can file without these fees just by paying the prep fee up front. And that if any fees are charged to these poor people, then all other clients must be charged that fee, even though they don't use the service. It's just not right to pick on these poor down and out people that are getting $10,000 of your tax money without having paid in a cent.

LT

I hear ya.....a statistic is still a statistic though. If it's 100%, it's 100% apr....people will scream at a credit card company for charging a poor soul with bad credit 28% apr, which on a $500 balance is only $11 a month.....if you really think about it, it's a little horrific that one is going to borrow money at $4/day (this is your $39 example over 9 days) for less than 2 weeks. It just doesn't make any sense, but I can see the whole business side of it as well and see your point very clearly on your last sentence!!! - so true!