Beware Of Tax Refund Loans

[faith 0]

H&R doesn't take any risk for this type of transaction and is not being charged a cent. It's a shame.

H&R shouldn't even have a right to offer such loans... On Federal tax money, are you kidding me??

That seems unethical to me. Banks borrow to other bank, which is one reason why they charge their customers an APR (typically, banks borrow at a rate averaging 6% depending on the fluctuation of the market and as dictated by the Fed). Also, banks are taking a risk of never being paid back when they borrow money to their customers. For instance, there are only one or two types of checks that banks can post on an account almost immediately (1 day being the maximum): Federal and State checks.

Everyone does what they feel like doing as long as they understand the principles, which often they don't.

H&R does take a risk.... if there is a federal offset and the person does not receive their refund they could get stuck holding the bag on that money and waiting for the person to decide to pay it off. It's a LOAN, that's what people are not getting. If you don't like the terms of the loan, don't take it. Payday loan places are allowed to charge much more interest than Household Bank (the H&R Block loan) people do.

[britbird 4]

You'd have to be pretty foolish to take a loan like this.