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State Treasurer Warns About Refund Anticipation Loans, "Instant" Tax Filing Offers
Illinois' state treasurer is warning residents about the high costs associated with refund anticipation loans and other so-called instant tax filing offers.

Alexi Giannoulias urges low-income residents to seek help filing their tax returns if they've not done it already. The Center for Economic Progress offers help for families with an income under $45,000 and individuals who earn less than $20,000. The group can be found online at www.economicprogress.org.

Giannoulias says fees associated with a tax refund anticipation loan or a "rapid refund" can grow in a hurry, and he's urging Illinoisans to avoid those means of filing taxes.

"An RAL (refund anticipation loan) worth, $3,000 for example, may cost more than $100, that's double or triple the base fee you see advertised, and the equivalent of up to a 140% interest rate."

Information from the Consumer Federation of America reveals the refund anticipation loan industry made more than $900-million in fees off of American taxpayers in 2007.

Other groups that offer tax help include the AARP, which assists low and middle-income taxpayers age 60 and over.
02 21 09 by Newsroom
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