RALs & Other Designs to Get your Money

[jainen]

useful and popular

>>I will probably take some flack<<

Not from me, my friend. I appreciate your comments. I say less on the subject now because I have been trounced in the past, but if you look at my two previous posts you'll see I don't join in "the tone of the replies" that you mention. Usually these threads start out with how unfair RAL's are, proceed to how stupid the clients are, and end up with how immoral EIC is.

I don't do RAL's myself, but have no quarrel with those who do. It is a useful and popular product.

[taxmandan]

RALs as a service

Judging from the tone of the replies, I realize that I will probably take some flack for this reply.

I do a very small number of RALs each year. I always explain, in detail, all the options and how much the loan will cost them. One year I had a lady file and wanted to get the loan. I told her "Do you realize that this will cost you around $100?" She said "Yes, but the plant that I work for has been shut down for two weeks because of weather. I did not get paid. The penalties on my house payment and credit cards will exceed $100 and my credit rating will be ruined."

So, in this case, and a couple of others in the same situation, it was the smarter business decision.

Ditto my experiences, I do a few RALs and don't encourage it, but I withhold moral judgement on my clients, whether they diverge from my idea of good finanical decisions or lifestyle choices. I'm not their mother, I'm their tax guy who will help them with filing required tax returns.

[Black Bart]

Penalties

penalties...will exceed $100...credit rating...ruined."

...the smarter business decision.

A postal clerk told me that USPS is doing a brisk business in overnight mail ($12) now because late fees for car payments, etc. are up around $50.

[jainen]

I used Express Mail

>>USPS is doing a brisk business in overnight mail <<

I used Express Mail for a FAFSA application once. Guaranteed delivery was two days because it was not a major city, but at least it was a P.O. Box. Actually delivered in four days. When I complained, the clerk just shrugged and refunded my money as if it was a standard thing.

Fortunately I was able to complete the app online on time.

[Chief]

Ex[ress Mail

Rather than trust the US Postal Service, I have several of my regular payments, utilties and car payment set up on automatic payment. The payment is taken outof my checking account on the due date. I have had bills handled this way. Perfect. No problem as Theo Huckably says. Back when I had house payments the darn mortgage company always lost my payments until I had payments made against my checking account.

[geekgirldany]

Hmm well I had my first call today wanting me to do their tax return. Ended up they wanted a loan on their last paystub/W-2. Told him to go to Jackson Hewitt or H&R that I didn't offer that service. He said they charged too much He was looking for someone more local. I told him the fees are high on any type of RAL whereever he goes.

[Brad Imsdahl]

I have a credit card where I can take a $10,000 cash advance anytime of the year. I don't need to wait for my W-2 or last pay stub.

Only costs 35% annual interest. Why would I need a RAL?