New Survey Shows Taxpayers Unaware Of Refund Anticipation Loans (RALs) And Their Annual Percentage Rates Of Up To 1300%
Americans for Fairness in Lending (AFFIL) released results of an online survey today showing that nearly half of respondents had never heard of Refund Anticipation Loans (RALs). Over half think that interest rates on these loans do not exceed 36%, when the actual range is 50% — 1300%. After learning more about RALs, consumers came to view such products as predatory and as disproportionately targeted to low-income taxpayers. Respondents overwhelmingly believe that Congress should pass a law to regulate RALs.