| Q: |
How many people took a refund anticipation loan last year at H&R Block? |
| A: |
H&R Block facilitated 2.9 million refund anticipation loans in 2009, compared with 3.9 million in 2008. |
| Q: |
What does a RAL cost at H&R Block? |
| A: |
The average $3,000 Classic RAL costs about $62. The finance charge is 1.07 percent of the loan and the refund account fee is $29.95 (excluding the state of California). |
| Q: |
What is the interest rate for a RAL at H&R Block? |
| A: |
When calculated as an annual percentage rate, the finance charge on a Classic RAL is typically 33 percent. Although a RAL is outstanding only 12 to 13 days, the federal Truth In Lending Act requires that lenders disclose finance charges as APR. |
| Q: |
Isn’t 33 percent a high APR? |
| A: |
A better way to look at the cost of a refund loan at H&R Block is the refund account fee of $29.95 and the finance charge of 1.07 percent of the loan principal (excluding the state of California). For an average loan amount of $3,000, the cost is about $62.14 at H&R Block. This is less than a credit card cash advance, a bank overdraft fee and in many
cases, using an ATM. |
| Q: | Does a taxpayer have to take a RAL if they want an Emerald Card? |
| A: |
No. An Emerald Card account costs nothing to open for H&R Block tax clients, and the account enables taxpayers to take advantage of direct deposit immediately to receive their refund from the IRS. |
| Q: | Why do taxpayers choose RALs? |
| A: |
Some of the most common reasons clients cite include paying overdue bills, paying for emergencies such as medical or auto repair expenses, and having the convenience of tax preparation fees deducted from their loan so they don't have to pay upfront. |
| Q: | What incentives do H&R Block tax professionals receive to sell RALs? |
| A: | None. H&R Block’s tax professionals and franchisees do not receive any financial or job performance incentives for assisting clients with refund loans or savings accounts. Our tax professionals are trained to provide the best tax advice and financial assistance geared
to each client’s individual needs. |
| Media Contact Information |
| For more information about H&R Block or its products and services, please contact the H&R Block Media Desk at (816)854-4287 or at mediadesk@hrblock.com.
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