I find this rather insulting

I’m in the tax business. One thing that is often debated at this time of year is Refund Anticipation Loans. It works like this — a tax prep business partners up with a bank — when a tax return is filed certain banks offer HIGH INTEREST — LOANS — based on the amount of the refund the taxpayer is getting. So, basically the taxpayer get their money *NOW* instead of *later* except they only get part of their money now.  (Cause it’s a HIGH interest loan)

Yeah — it’s a LOAN – it’s a HIGH INTEREST loan — and generally it’s not the best financial decision a person can make — but sometimes people need money *NOW* to put food on the table or get a car to get to a job to make more money. Sure — it’s not the best way to get money — but it’s a heck of a lot better than getting a loan from Uncle Guido and having to worry about losing a limb if you don’t pay him back.

From a business perspective, as a tax business, it’s the greatest thing since sliced bread. It’s practically guaranteed money (you don’t have to worry about a check bouncing) but I’ve always explained the process very carefully to clients “honey if you WAIT two weeks you get ALL your money.” I said I was in business I never said I was good at it, I’m not ruthless enough.  (Did I mention HIGH INTEREST)

So – bottom line is that I think that refund loans aren’t really a great idea. I’d never turn one away (after explaining the process) cause it’s money, but against the better judgment of my pocketbook I’ve tried to talk a person or two out of it.

THAT said, I say that this really pisses me off …

Effective October 1, 2007, a Department of Defense regulation states that active duty military personnel and their dependent(s) may not receive Refund Anticipation Loans (RALs) due to the high fees.

That’s right — the Department of Defense, a part of our government, has stated that active duty military personnel {which includes people that may have left the military already – but if they earned more than a certain percentage of their income in 2007 from the military they are still considered ‘active military personnel’} may not make an informed decision to get a high fee loan.

These young brave men and women can go out and spend years in the desert eating sand and getting shot at and taking a chance on becoming a victim of “friendly fire” or  becoming “collateral damage” or maybe coming home in a pine box as an “acceptable loss.”  And considering the military is (currently) all volunteer these young adults are all allowed to make the decision to go get SHOT AT!!!!


If you want to PROTECT military personnel



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