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Refund Anticipation Loan Test

Adam Rust's picture

Posted November 22, 2010

An associate passed along a test that he uses when he trains volunteers at Voluntary Income Tax Assistance sites: 

A refund anticipation loan is equivalent to:

  • a) Getting Your Money Now!
  • b) Paying a lot To Get Your Money Now!
  • c) Costing low income North Carolinians $63 million a year!
  • d) All of the above.

The Debt Indicator is

  • a) Provided by the IRS to indicate a debt obligation to Uncle Sam
  • b) What banks use to underwrite RALs.
  • c) What the IRS will not provide in 2011.
  • d) All of the above.

The North Carolina Refund Anticipation Loan Act

  • a) Requires tax preparers who originate RALS to register with the NC Commissioner of Banks
  • b) Requires tax preparers to prominently display the cost of RALS
  • c) Ignored by more than 1 in 4 tax prepares providing RALS
  • d) All of the above.