(KMOV)-- Changes in federal banking regulations might directly affect thousands of local taxpayers who use H&R Block, specifically those who get a loan from the tax preparer in advance of their income tax refund.
Last year, the company offered something called a “refund anticipation” loan, but not this year.
Nearly half of H&R Block’s customers got a refund anticipation loan last year. It is a short term, high interest loan used primarily by clients living paycheck to paycheck.
With government preventing banks from backing these loans, H&R Block is offering an alternative called refund anticipation check, but there are fees involved.
Customers should read terms and details, and understand how much of a refund they would forego if they use the offer.
H&R Block is not the only outlet for refund cash, and not all of them are wise choices.
Last year at Mo Money refunds were late coming in. The BBB says to check out the paperwork or with the IRS before signing anything.
Customers should also understand this is a short-term loan with high interest rates that can vary between 50 and 500%.
Instead, the IRS advises taxpayers to file electronically, so the refund is directly deposited into your bank account. You may get your refund after as little as two weeks.
To visit the IRS website, click here.
To visit the BBB website, click here.