This is just a sampling of H & R Blocks predatory lending scheme...Capital One and Wachovia both do this all the time to their customers - unfortunately, there are no laws to stop them either....
Although RALs are offered by legit businesses, the loan terms rival those of the neighborhood loan shark. Small fees ($30 here, $59 there) add up. On the average refund this year ($2,150), forking over $100 to cover loan costs puts your effective APR at 178%. (No, that's not a typo.) Add in admin fees and you're looking at a 235% APR. (Again, not a typo.)
2007-02-08 05:07:36 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
My question is: are people ever going to READ and figure out what they are doing BEFORE they sign the paperwork????!
2007-02-08 05:12:50 · answer #1 · answered by Joseph's Mama 4 · 0⤊ 1⤋
I cannot understand for the life of me why ANYONE would do the RAL.
If I were congress I wouldn't do a damn thing about it.
People are their own worst enemy.
They have lived without their money for 12 months and now they need it yesterday.
Couldn't they just wait the extra 4 weeks and have it ALL?
I hope that congress NEVER does change the law! People need to be accountable for their own actions.
I am sure that YOU will never do that again and your question here will save several others from doing that too! (thank you)
2007-02-08 13:22:26 · answer #2 · answered by lisa s 6 · 0⤊ 0⤋
I fall right in with most of the answers so far. There is a basic concept in capitalism, "caveat emptor" or let the buyer beware.
Read the paperwork, understand the charges, decide what to do, do it and don't complain.
If I offer for sale, a BIC lighter, for $100,000,000 and you buy it, is it my fault? In your world it is. In my world every swinging dick is out to get every dime I make. It is MY responsibility to get SOME value for my money.
You may not get what you pay for but you will damn sure pay for what you get. If you are willing to pay someone 235% to get shafted, that is your business.
I apologize if I sound crude but at some point you must accept the responsibility for your own actions.
2007-02-08 14:10:19 · answer #3 · answered by gimpalomg 7 · 1⤊ 0⤋
What about pay day loans? Check cashing places? Bank overdraft? There all the same, and the Banks have big lobbyist and lots of money.
But Consumers have the right and responsibility to dictate to corporate America what they are willing to accept. As long as we sign on the dotted line and accept predatory lenders they will continue to be here.
2007-02-08 13:23:25 · answer #4 · answered by Alan W 3 · 1⤊ 0⤋
Spunk y,
When a person needs money NOW and they don't have the credit to get a loan or other means of financing, they don't care about APRs and fees.
People fall on bad situations, sometimes through no fault of their own. If that choice is taken away from them, where are they supposed to go?
2007-02-08 13:19:04 · answer #5 · answered by Anonymous · 3⤊ 0⤋
They already have.
They require that these loans be called loans. H&R Block used to call it "instant refund".
2007-02-14 20:32:20 · answer #6 · answered by clawedlemew 3 · 1⤊ 0⤋
The answer is No; these matters are regulated by the state. Blame your state government.
2007-02-08 19:16:27 · answer #7 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
Sorry--but its the free market. I dont like it either, but we cant do much about it without limiting our economic freedom.
2007-02-08 13:20:36 · answer #8 · answered by Anonymous · 2⤊ 0⤋