Home Blog May 20, 2009 Payday Loans and Tax Advances Come at Hefty Prices So Beware

May 20, 2009

Investment News Bloomberg recently reported, “More Americans applied for tax refund loans in 2007, reversing two years of declines, according to a joint study released last week by the Washington-based Consumer Federation of America and the Boston-based National Consumer Law Center.” Tax refunds and advance payday loans come at a hefty price.

“Loans secured by a borrower’s expected tax refund often leave borrowers with effective interest rates of as much as 500 percent for a $300 loan over a 10-day repayment period, according to the study from the Consumer Federation of America and the National Consumer Law Center.”

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