Comments on: Doing a Tax Refund Loan? Ask Yourself This 1 Question

By: Beth

Beth — Sun, 05 Dec 2010 11:56:27 +0000

OK, I understand your “Hurry up I need money Tax Loan Advice”, can you advise me on this. Past COO and VP of Sales that was force to use my early retirement due to serious and chronic health problems that left me disabled. I had little choice other than suicide. The story is personal, now I was COO not CFO and I have also suffered memory and emotional/psychological disabilities associated with these diseases, so if you can help me I would be extremely thankful. I am pending tax refunds (ammended taxes for 2005 – 2007), thankfully I had a judge that took the time to review my work history, work ethics, as well as my health. I have had situations including theft and the unexpected passing of a family member. I paid 57.00, each, to obtain IRS copies of 2005, 2006 and 2007 copies of my returns, sent this via overnight and do have confirmation it was received OVER A MONTH AGO. I will still need to review these with my tax/accountant person and then finally file the ammendments.

I have bills, old bills (did not declare bankruptcy), have loss nearly everything waiting on disability, my son just lost his father, I really would like to have some level of stress relief now, not to mention a basic need for the most meagor of Christmas hopes (a tree a gift for my son).

My credit score has gone from 748 in 2005 to probably 450 now. Is there a loan available that I can show good faith in paying back due to my pending situation with my taxes?

I so appreciate any advice you can offer.

Respectfully,

Beth

By: Stay at Home Mom CFO

Stay at Home Mom CFO — Fri, 26 Mar 2010 22:43:07 +0000

I feel these are such a scam and do ultimately prey on the most desperate and vulnerable. I’ve heard a lot of people who don’t have bank accounts (read: poor) use them because otherwise they would need to wait 8-10 weeks for the paper check in the mail. That temptation, if you are poor and struggling, must be so great hence the profits for these “loans” are so large. Unlike payday loans (ie someone loses their job) is it even a “loan” if there is no liability of loss for the lender? How do these loans get paid back?

By: Smarter Spend

Smarter Spend — Fri, 26 Mar 2010 08:53:50 +0000

Tax loans are a legal equivalent of a scam. The public should be informed about how unfair these loans are and how much money they are wasting- its the equivalent of taking money and burning it in a fire.

By: Darwin

Darwin — Wed, 24 Mar 2010 22:41:35 +0000

@Budgeting in the Fun Stuff, Good point. While taking on credit card debt has its own drawbacks, if you pay monthly (like people that take out payday loans assume they will when they sign on the dotted line), credit card would be a more prudent choice than a high interest loan - assuming the discipline and means exist to immediately pay that cc in full.

By: Darwin

Darwin — Wed, 24 Mar 2010 22:40:17 +0000

@Crystal, That's right. People don't always treat money equally. Money is fungible and whether it's a paycheck, a windfall, a tax return or a $20 bill you found in your pocket, it should be treated similarly.

By: Darwin

Darwin — Wed, 24 Mar 2010 22:39:19 +0000

@kt, Low interest debt for something like a home = fine. 100% interest debt so you don't have to wait 2 weeks = immature and bad. I'm not against all forms of debt, but if comes with horrible terms, avoid at all costs.

By: kt

kt — Wed, 24 Mar 2010 18:56:31 +0000

my answer to the above question about payday loans is no. infact i have never had to take out a loan from a financial institution

By: Crystal

Crystal — Wed, 24 Mar 2010 18:53:27 +0000

I know why! (my brother does it every year)
People do not think of their tax refund as ‘real’ $, they view it as a windfall from some long lost crazy uncle so paying an extra $200 ‘fake’ money so that they can get $600 ‘real’ money RIGHT THIS VERY INSTANT does not faze them.

By: ctreit

ctreit — Wed, 24 Mar 2010 14:13:00 +0000

I have recently read about these tax refund loans. I was thinking then that finance guys and gals are very resourceful when it comes to bilking customers out of money. While I can see why somebody would take out a payday loan, I don’t understand why somebody would take a tax refund loan.

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Wed, 24 Mar 2010 14:03:01 +0000

I didn’t know these loans even existed…wow. Just what we need, more ways to give up money for hardly any benefit at all…

Even if I really needed the money, like my life was on the line, I’d put the purchase on my credit card and pay it off with my tax check. I mean, it only takes waiting a couple of weeks to get our refund (if we even get one) directly deposited into our bank account anyway.

As with credit card debt, “just say no”.