The New Realities of the RAL

David Rothstein is a Researcher at Policy Matters Ohio and an NCTC Steering Committee member

Instant money. Money now loans. Quick refunds. Tax refund anticipation loans have dozens of names but this year, they may be anything but instant, quick, or…available. Guest Bloggers David Rothstein and David Marzahl take a look at the new realities of the RAL.

Just before Christmas, the Office of the Controller Currency (OCC) delivered a lump of coal to H&R Block, the nation’s largest tax chain, ruling that their partner bank (HSBC) was not stable enough to sell tax loans this year. This added to the growing list of banks that are out of the RAL market, most notably JP Morgan Chase and Santa Barbara Bank and Trust. Funneled down to the taxpayer level those expecting RALs will face new realities come January 14 when the IRS begins accepting electronic returns.