Who would pay an annualized rate of 178 percent on a 10-day loan they are essentially making to themselves?
Apparently over 12 million taxpayers would, according to the National Consumer Law Center. That is how many taxpayers took out a refund anticipation loan, or RALs, in 2004. Though these loans are more often referred to as “instant tax refunds” by the tax preparation firms that market them. Obviously it is the promise of speed that attracts taxpayers, not the fine print.
And Household International, now known as HSBC Finance, is right there to take your money. One more way HSBC sacrifices integrity to make a quick dollar from those who can least afford it, we report so you can decide. Interested in getting a Best Buy consumer electronics credit card? HSBC Finance does that too. You’ve been warned. After HSBC takes a portion of one’s earned income credit and child care credit (most rapid refunds include these credits) HSBC Finance is actually taking money directly from the children responsible for these credits, perhaps due to poor decisions by the parents.
Related posts:
