Filed under: Family Money, Tax, Consumer Ally, In the News
The Federal Deposit Insurance Corporation has notified Republic Bank & Trust of Kentucky that its high-cost refund anticipation loans are "unsafe and unsound."The FDIC's action against Republic Bank is based on the IRS's decision last year to no longer offer information on a taxpayer's debt indicator, the FDIC said in a statement.
The indicator was a number available from the IRS that helped tax preparers and banks make refund anticipation loans - short-term loans offered by tax preparers to clients that they later repay with their refunds - by letting them know the likelihood of whether a borrower's refund would be taken by the government for debts, such as federally-insured loans, delinquent child support and federal and state tax liens.
Continue reading Feds Warn Bank Making Tax Refund Anticipation Loans That They're 'Unsafe'
Feds Warn Bank Making Tax Refund Anticipation Loans That They're 'Unsafe' originally appeared on WalletPop on Mon, 07 Mar 2011 14:00:00 EST. Please see our terms for use of feeds.
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Source: http://www.walletpop.com/2011/03/07/feds-warn-one-of-last-banks-making-tax-refund-loans-theyre-uns/
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