Refund Anticipation Loans

We have all seen the ads. Just sign this form when filing your tax return, pay an additional fee, and you can walk out with up to $5000 cash against your coming refund check. This sounds great, particularly if you have some emergency bills that need to be paid. Maybe you need to pay off your bookie - or lose a pinkie. Perhaps the need is less vital than that, and you just make a split second decision that you want your cash immediately.
Don’t take out loans with APRs (interest rates) in excess of 36%. I want to be very clear about my stance on this type of tax refund bank product offered by tax preparers, car dealers, check cashing businesses, etc. I have seen the sales pitch at tax conferences, and I can tell you that these loans are generally not in the best interest of the taxpayer. It’s been a relief to find that due to the IRS dropping the debt indicator program, some companies will not be able to offer these products this year. There will be less hawking of this type of product and hopefully more focus on properly preparing tax returns.