New Tax-Time Report: The Return of the Interest-Bearing Refund Anticipation Loan and other Perils Faced by Consumers

April 3, 2019 — Press Release

FOR IMMEDIATE RELEASE: April 3, 2019

Download the full report at: http://bit.ly/2TSpEGK

Boston – Tax time, typically a time for a substantial influx of funds for American consumers in the form of their refunds, was transformed into a time of uncertainty and drastic change this year, as documented in the National Consumer Law Center’s report released today: 2019 Tax Season: The Return of the Interest-Bearing Refund Anticipation Loan and other Perils Faced by Consumers.

“This year’s tax season has been a time of turmoil, preceded by the longest government shutdown in history and marked by the inaugural implementation of key provisions of the new tax law,” said Mandi Matlock, of counsel to National Consumer Law Center and co-author of the report. “The shutdown cost the IRS critical weeks of preparation, and raised questions as to whether the IRS would be able to issue timely refunds.”

The confusion and concern may be a boon for lenders and preparers this year. “The tax time financial product market is evolving but unfortunately in the wrong direction,” according to Chi Chi Wu, an attorney at National Consumer Law Center and co-author of the report. “Taxpayers seeking a ‘no-fee’ refund anticipation loan may be offered an interest-bearing loan instead this year.”