Rapid Tax Refunds Could Mean Exorbitant Interest Rates
The attorney general's office is cautioning residents this tax season to watch out for rapid tax loans or rapid refunds. Sarah Tucker, the Senior Assistant Attorney General said consumers should be aware of bad deals getting refunds from some services.
“Rapid refunds might sound very attractive but if you obtain a rapid refund, whether it's through a refund anticipation check or perhaps your tax preparer is going to give you a debit card, you actually are going to be paying a lot of fees that you wouldn't otherwise pay and you're just borrowing your own money,” said Tucker.
She said residents need to understand those services.
“The problem is it's a loan secured by your refund so if your refund is not at the amount that you thought it was going to be you're going to be paying some exorbitant interest and you're actually borrowing your own money. We want to let people know that you don't have to do that in order to get your tax refund fast,” said Tucker.
The attorney general's office encourages residents to visit gotyourbackArkansas.org to find free tax filing services. She noted with direct deposit refunds can be received in 8 to 15 days.