Tax Refund Loans - Refund Anticipation Loans
64Good Credit But Denied a Refund Anticipation Loan
You have seen the commercials. "Do your taxes here and get your refund in minutes." Not so fast now. A friend of mine went to a popular tax service to get up to a thousand dollars based on their 2009 estimated tax refund. My friend was getting back almost 5,000 dollars. Excited and happy that this was their estimated tax refund, my friend couldn't wait to get a thousand dollar refund anticipation loan. My friend, who had good credit didn't qualify.
They didn't even qualify for a 50 dollar refund anticipation loan. So what was the problem? The problem is that the bank that issues the RAL or refund anticipation loan tightened the restriction on getting the loan. That means that the thousands of people that want to get refund anticipation loans are going to get denied because of the current economic situation.
The banks just got a 750 billion dollar bailout but they don't want to loan out any of that money. I think they are sitting on the interest. So if you have been getting a refund anticipaion loan from your favorite tax preparer, don't get too excited. If my friend has good credit and couldn't get one of the easiest loans, then you probably won't get one either.
If you have problems getting a Refund Anticipation Loan feel free to comment. The big tax preparers are going to have a hard time making extra money with these loan products.
One crazy idea I heard was to give everyone a 2010 stimulus check for $50,000. This should would stimulate the economy in no time. Pretty crazy idea but it makes sense.
CommentsLoading...
I have gone thourgh SBBT for the last six years with no problem. This year, sorry you have been converted to an efile. I am wondering if this is due to the fact that the majority of my refund is due in earned income tax credit and an additional child tax credit? I am sure many more people will be negatively affected by the banking industry and the state of the economy, oddly, I think they should warn those trying to get a RAL who needs the money the most that it will probably be denied.
For the past 10 years I have filed my taxes and received a RAL with no problems. This year I had my taxes done with a H and R Block and was told I could expect my refund in two to three days. Two days after having my taxes done I called and was told I was turned down, the reason was unknown. After going on line and reading some of the issues with H and R block I feel that I should have been warned this could happen and I could have made the decision to e-file and saved several hundred dollars in filing services. I feel that customers should be told the truth and not lead on. With all the issues that seemed to have occured in December of 2008 I should have been informed that a credit check would take place and I could be turned down because of that. I was never told that my credit would be checked and I feel that this is a volation.
Yeah I applied for an RAL and got denied. like some of u I used SSBT for at least five years and always got approved. I think the banks have recieved the bailout money but not lending but still making money off the interest of the bailout money. Once again the big dogs get bailout but the working class can't even get a loan out !!!
we've always gotten approved for the refund anticipation loan until 2010. im so mad h & r block said i should get my check on the 19th and i checked the status and its been denied. now they say i have wait 8-15 days from when my return was accepted! thats BS!!!!!!
Santa Barbara Bank is no longer doing Refund Anticipation Loans.
HSBC and HR Block are still doing the loans!
Alway's remember that a RAL is a LOAN from the bank and sometimes for whatever reason, the bank may decline to loan. At that point, your refund goes to the 8-15 day window and your bank fees get reduced. This is usually not the fault of your tax pro/preparer.
Well i have been getting ral's for about 4 years now. Every year i have been accepted until this year. I have good credit and do not owe any debts. I cannot understand why i was denied this year when nothing has changed from previous years. My tax preparer from jackson hewitt even told me that i had a 99% chance of being approved since nothing has changed from past years. He also told me ,after he was done preparing my taxes, that this was his very first tax return. I'm wondering if he made a mistake because there is no reason i should be denied.
Update: I have called the bank that gives the RAL for Jackson Hewitt and i was approved and my RAL will be direct deposited into my account tomorrow. It's wierd because when i call jackson hewitt's automated line it says i was denied and my money will change to an AR and be available in 8-15 days. So my advice to anyone who is getting denied call the bank instead of the tax preparer's automated line and you might get different results like me.
I've been getting RAL for abt 4 years now...then 2010 i got denied...I mean if i quailfy for it for 4 years then y couldnt i get it this year...Im pissed off cause i got laid off and was depending on that money...i called jackson hewitt and they gave me the 1-800 number to call...she told me that i would get my money by the 29th...since i have to wait this long next year i will do them myself.
I have been approved last year for the RAL at H&R Block. But all of a sudden this year i was denied. I called H&R Block, they gave me a number, it was strictly automated, so i looked up the banks number online they said they had nothing to do with the decision i had to call H&R Block, so i called them back, they then gave me a different number and said i had to call the bank and again it was strictly automated. Does anyone have a number for HSBC bank i can call and actually talk to someone who can give me answers?
WELL WE HAVE NASTY CREDIT BUT I STILL CAN'T UNDER STAND WHY A PERSON WOULD GET DENIED ON THERE TAXES EVEN IF YOU DO AND OR DID A LOAN .... WHAT WOULD BE SOME REASONS WHY .... E-MAIL ME AT big_heavyd_08@yahoo.com ..... THANKS
I have been waiting over a week now for my tax return which I thought was suppose to be rapid.I called my taxpreparer and all that they said was that the IRS approved everything and that I should be getting a check soon don't know who to call to check for a date my refund will be in? Any ideas
I think this is ridculos because the bank is messing it up for people. the bailout money was given to help the people when tax time came. And they are doing the total opposite because they want to build up there interest. Whats going to happen is next year, alot of companies like HR block, Jaskson hewitt is going to have a low turn out in business because people are going to do there taxes there self, since they are all ready waiting the 8- 15 days. It really sucks!!!
all i know is Jackson Hewitt and H & R block might as well shut down their business. I bet next year they'll both look stupid wishing they could get costumers..DO NOT USE THEM EVER AGAIN!!! WE WILL TEACH THEM..IF WE ALL STOP GOING THEN THEY WILL CLOSE DOWN!!! REMEMBER THEY SCAMMED US AND KEEP THAT IN YOUR MIND THE NEXT TIME YOU DO YOUR TAXES!!!
HSBC 888-832-5625
I was able to EVENTUALLY reach a life person using this number.
I work for one of the above mentioned tax companies and it isn't H&R block. Yes, they did start checking credit reports this past year...due to the fact that some people have fraudulently received money, that they are having to be more careful on who they give a loan too. H&R bank has their on bank that use for their loans. As far as Jackson Hewitt SBB&T. Santa Barbara Bank and Trust was seized from the government in a failing banking system. The SEC is in the process of taking away all RAL loans, because it has become a liability to the banking systems when people receive the money and they aren't supposed to...recovering the money is difficult. So you have had a few bad apples that have ruined it for the rest. I personally have never recommended the loans, due to the fact of what the rates are to high. I don't have to push them...most of the people that receive them really don't care because of the fact that they don't care it is not their money that they are receiving. I had several people that walked out of my office because we were not doing rals this past year and won't be doing them this year. The other companies told people that they could get them instead of telling them the truth to take away business from the other people. Also, if you applied for the loans and were denied your fees for the RAL should have been given back to you...you need to look at your paper work, I am sure that they were given back to you. You were only charged for having your return done and a minimal fee for having it done within the 8-10 days which is usually about $30. If you don't want to have any fees taken out of your check you need to pay for your taxes when they are done and then within 10-15 days depending on what day you file...Wednesdays is usually the dump for the 10 days and then after that it falls into the 15 days.
I was told by a friend that does taxes that many people are being turned down for the RAL. One of the reasons was because the IRS was flagging returns for those that owed student loans, child support, etc in the past. But starting this year, they are not doing that. This is causing the banks that issue the RAL's to tighten the restrictions for the qualifications of the loan. When she told me this, I decided to do my own taxes this year. I have not always gotten the RAL's in the past, maybe 2 times out of the last 10 years or so. If you go direct deposit, your return will usually be deposited in your bank in about 10-15 days - the same as if you end up getting denied for the RAL.
Its been about 3 or 4 years since I tried to get an RAL, and I didn't have any problems with mine. Republic Bank made the loan and I had my taxes done through Liberty. My credit is a mixed bag of good and bad.
I have done by taxes at Jackson am hewitt for years and always got approved for the tax loans. Not this year. If I would have known this I would have went on tax act for free. Very unpleased
tiffanyr 3 years ago
I have gone thourgh SBBT for the last six years with no problem. This year, sorry you have been converted to an efile. I am wondering if this is due to the fact that the majority of my refund is due in earned income tax credit and an additional child tax credit? I am sure many more people will be negatively affected by the banking industry and the state of the economy, oddly, I think they should warn those trying to get a RAL who needs the money the most that it will probably be denied.