H & R Block RAL Question.?

Question

Does anyone know how much a same day refund anticipation loan from H&R Block cost? When you call they do not quote over the phone.

Answer 1

It will depend on the amt of your refund, The RAL fee is a percentage of your refund plus the fees for filing through H7R block, my sister did this expected return was almost $7000 with both federal and state -- it cost her about $350 (and this came out of her refund-as that is how she requested it)

now I just purchase H&R blocks Tax cut program from Walmart and do my own taxes, by electronically filing I get mine back in full in 7-10 days and it costs only $62 total ($30 for the program and $16 for state and federal file)--You will have to pay the $30 at the store but can have the 2-$16 fees taken out of your refund when you file, so you would only be $30 out of pocket--so why not do it this way and save $300.

Answer 2

Of course they won't quote it! If you took a few minutes to figure it out, you'd see that the APR is around 300% - 500%. If you ask for the APR, they are bound BY LAW to tell you.

The RAL is probably the biggest loan scam going, short of the payday or title lending scams. If you file your return electronically and have it sent directly to your bank account you should have your refund in 1 or 2 weeks. If you file early it's very possible to have it in LESS than 1 week. I got mine in 4 days last year!

Don't be suckered in by the RAL scam! It only speeds things up by 2 or 3 days most of the time. Block is ripping you off badly enough as it is with the fees that they charge. Don't give them any more of your hard-earned $$$ than absolutely necessary.

Answer 3

H&R Block has a table of interest charges for the loans. Finance charges are based on the amount of the refund, whether or not you take your loan on a debit card, and whether you want your money in 1-2 days or instantly.

The debit card can be quite a bit cheaper than either a check or direct deposit. If you take your loan proceeds on a debit card, and can wait 1-2 days for your money, the annualized interest rate can be as low as 36%, which is less interest than charged for a cash advance on many credit cards.

If you borrow against your refund for 2 weeks, the finance charges can be as low as 1.5% - 2% of your refund amount. You decide if that is a good or bad deal for you.

If you call them back with a specific round number, for example $1000, they will tell you exactly what the finance charges are for that loan amount.