A Refund Anticipation Loan (“RAL”) is not your actual refund; it is a short-term loan in anticipation of YOUR income tax refund being paid by the United States Department of Treasury. With a “RAL”, instead of transmitting the entire tax refund to YOUR account, your tax preparer instructs the “IRS” to transmit YOUR refund to an Electronic Refund Deposit (ERD) Account established for YOUR benefit to pay any outstanding fees.
If you are applying for a “RAL” there is no credit check because your loan advance is secured by YOUR tax refund. A “RAL” finance fee of $57 (APR 208.05% is based on a 10 day loan period) is deducted from the $1,057 advance upon approval for a $1,000 gross disbursement less tax preparation fees.
"When you take out a refund anticipation loan, you are borrowing money against your tax refund. If your tax refund is less than expected, you will still owe the entire amount of the loan. If your refund is delayed, you may have to pay additional costs. YOU CAN GET YOUR REFUND IN 8 TO 15 DAYS WITHOUT PAYING ANY EXTRA FEES AND TAKING OUT A LOAN. You can have your tax return filed electronically and your refund direct deposited into your own financial institution account without obtaining a loan or paying fees for an extra product."