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.
About 12 percent of H&R Block's 24 million clients select refund anticipation loans. In 2009, H&R Block facilitated 2.9 million refund anticipation loans through its offices. The rate of H&R Block clients approved for refund anticipation loans has decreased 31 percent for the past five years.
Taxpayers choose refund anticipation loans because they can receive money on the same day or within 2 days, compared to waiting 8-15 days for a tax refund to be direct deposited into their existing bank account, or within 6 weeks for a mailed IRS refund check.
There are two fees, which may be charged by the lending bank, associated with a refund anticipation loan at H&R Block:
- A refund account fee (not in California)
- The finance charge
H&R Block does not charge an administrative fee for providing refund anticipation loans.
In 2010, RALs are repaid in an average of 12 to 13 days when the lending bank receives the taxpayer's federal tax refund.
