Tuesday, April 15, 2008

Some don't like lack of RAL option



Greetings, faithful readers! I didn't realize I haven't updated in over a month. I've been very busy with a new but seasonal job. And I have discovered something interesting. Military personnel are not fond of the Military Lending Act as it pertains to Refund Anticipation Loans. While not as expensive as recurrent payday loans, Refund Anticipation Loans are short-term, high interest loans given in advance of an income tax refund. The loan is normally paid off with the proceeds of the tax refund and the lender pockets the difference. The loans are considered by many to be predatory and are illegal to give to members of the Armed Forces or their dependents.

However, a lot of military personnel don't know that the law has been changed to prevent them from getting these loans, and I have seen many disgruntled service members who don't want to wait for their refunds. Unfortunately, it doesn't seem like they have much choice in the matter, thanks to the new legislation.

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