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Our Town, February 24, 2005 Legislation on LoansLiz Todd Cash-strapped New Yorkers should be protected from charges related to certain short-term loans, says State Senator Liz Krueger, who has reintroduced legislation to that end. Refund Anticipation Loans (RALs) are short-term, high cost loans secured by and repaid from the proceeds of a consumer’s tax refund from the Internal Revenue Service (IRS). The Refund Anticipation Loan Act (RAL) includes provisions to limit RAL fees, prohibit debt collection abuses by facilitators, and prevent referrals to check cashers. “Cash-strapped consumers will pay close to a billion
dollars in RAL-related charges in the next year,” said Senator Krueger. “That money belongs in the pockets of
consumers, not in the coffers of wealthy banks and tax preparation
businesses. |
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