H&R Block RAL Resource Center
A refund anticipation loan is a short-term loan secured by a taxpayer’s anticipated federal income tax refund. The loan is made by a third-party lending bank and facilitated by H&R Block in its tax offices.
Taxpayers choose refund anticipation loans because they can receive money in one to two days, compared to waiting up to 15 days for a tax refund to be directly deposited into their existing bank account or three to eight weeks for a mailed IRS refund check.
There are two fees, both charged by the lending bank, associated with a RAL: a refund account fee and a finance charge. RALs are repaid in an average of 11 to 12 days when the lending bank receives the taxpayer’s federal tax refund. Some tax preparers also charge an administrative fee for providing RALs, but H&R Block does not.
RALs provide taxpayers with credit, usually up to the amount of the taxpayer’s expected IRS refund, and tax refunds secure these consumers loans that otherwise would not be available at a low cost to someone without a bank account or good credit.
Please visit the Coalition For Taxpayer Financial Choice, at www.taxpayerfinancialchoice.com, for more information.
