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What Is A Refund Anticipation Loan (RAL)?

[ 0 ] Mar. 7, 2012 | SBO Editor

A RAL is not a quick, fast or instant refund. It is a high-interest loan. The lender will charge you interest and fees, which will reduce your refund.

Before you enter into a RAL agreement with a tax preparer, the preparer must give you a written disclosure statement that explains:

~you aren’t required to take a RAL in order to receive your tax refund

~the amount of fees and interest you will have to pay if you take a RAL

~the amount you will receive after the fees and interest are deducted

~the annual percentage rate of interest that you will be charged

~the amount your refund will be if you don’t take out a RAL

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Category: Features