Consumer Watch: The Truth About Tax Refund Loans

Taxpayers lost about $800 million from their tax refunds last year, thanks to a common service offered by Oklahoma tax preparers. One taxpayer wishes she never signed up for the service. See her story tonight at 10 p.m.

Wednesday, January 27th 2010, 3:31 pm

By: News 9

By Amanda Taylor, NEWS 9

OKLAHOMA CITY -- Taxpayers lost about $800 million from their tax refunds last year, thanks to a common service offered by Oklahoma tax preparers.

It's known as a RAL, or Refund Anticipation Loan. For a fee of anywhere from $25 to several hundred dollars, you can get a loan on your expected tax refund.

The benefit is you get money as quick as a day later where if you waited for the actual refund, it could take 7 to 10 days (if you e-file and have it direct deposited).

But NEWS 9's Consumer Watch Team talked to one metro taxpayer who wishes she never signed up for a RAL. She shares her story tonight on NEWS 9 at 10 p.m.