While predatory lending is a year-round industry here in the US, the tax season is when the industry gains the most attention. Refund Anticipation Loans (RALs) are advertised in office windows, on billboards, and even on sandwich boards worn by people walking through the streets. Yet these RALs, which offer a chance to get a quick refund, are nothing more than loans charging exorbitant interest, sometimes as high as 800%. Refund anticipation loans cost workers $900 million each year, while their more commonly used partner, the payday loan, cost $8.6 billion each year.
Its time to stop predatory lending and start regulating the industry. The National Community Tax Coalition is sponsoring a petition asking for Interest Rate Protections, Credit Card Protections, and Financial Product Protections. Sign on today to ensure less predatory lending tomorrow!