I was just wondering around the internet and I found these complaints on Consumer Affairs about the H&R block rapid anticipation loan (RAL).

I just wanted to warn people that may use H&R Block and their tax services. It seems the rapid anticipation loans are being denied this year. It appears they are running a credit check before they give you the loan. With the economy the way it is many are being denied.

People are losing hundreds in fees. They are paying $200-$300 with the anticipation of getting the RAL in two days and then they are denied and have to wait the normal 10 to 14 days.

They are not refunding the fees if you are denied and it seems they are not verbally disclosing that they are running credit checks. I am sure it is snuck in the paper work somewhere so make sure you read any documents before you sign and pay them their fee.

I wish we could make this an all around forum sticky. This was the one place it looked like it belonged. Maybe I will cross post this is the pub as well.

I would hate for some of our members to use this service to get their refund in two days and then being denied

I can only assume that if this happening at H&R Block it may be happening at other tax companies that offer this same type of service.

I added more information about RALs in general
here in the PUB if you want more info.

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Thanks for the info. My son and his wife did the RAL and it ws pushed back also.to 8-15 days, as alot of peoples were. They needed it quick to pay rent and bills, after the ice storm and short hours.

My daughter-in-law said she didn't remember reading anything about the delay in the paperwork she signed, but I am sure it must have been there in the fine print.

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Why do people use this place?? Taxes especially the basic ones are easy, particularly if you use online tax software like turbotax or taxcut. I got my state back in 4 days and my federal in 10. Total cost was $9.95

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Because my son and his wife are smarter than I am, and don't listen

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that's weird.i got mine like normal 1-2 days.i also have there EMERALD card and had it put in there,so that probably did make a difference.

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Our neighbors up the street have a family accountant they pay $250 per year...he does 3 sets of taxes. Last year after they forked out the money and bitched about it (again) I told them to sit down and do it online. The online program actually got them more money and they figured out how easy it was...and these people were not exactly at the front of line when brains were handed out if you get my drift.

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I don't know what kind of a card they have, but they have some kind of card,too.

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SOAPLADY, I agree. I useto use an account (and my taxes were always simple) Till I figured out I can do it online for much less and get more of a refund.

I don't recomend it to everyone though.. each indivdual is different, as are their circumstances.

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I also do mine online with TaxAct. Federal is free and takes 10 business days to get your refund.

I use my states own electronic filing and it takes 7 business days to get the refund.

Very easy.

My eighteen year old daughter is a first time filer this year and I had her do it using TaxAct and she did the whole thing herself with minimal instruction from me.

For most people with a simple form it is very easy and the free tax software does all the calculations for you.

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Thanks for the warning. I always thought that RAL's smelled just like a PDL--big fees and having to pay it off in the shortterm. Much, MUCH better to do it yourself online.

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I think people with decent reliabiltuy did get the rapid refund--if others had a dishonest history or lies in their past that was the proiblem I have in these two motnhs processed many many hr block cards for people they processed and TRUSTED!!!!!!! nothing is pushed back unless collections or child support is a hit? yes or no Boss?

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Why are the fees so much?! I posted, on another thread about the fees that were taken from me, when I received the RAL.......I paid about $35.00 for bank fees and $50.00 for the 'adance.' I received the RAL THAT same day. Also...just did my Taxes.....received them in 1-2 days and the fees I paid added up to about $150.00. I din't think it was bad at all considereing I recieved my Refund the SAME day I did my Taxes!!

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I can only tell you what I read on the compaints. Have you read them? Several people stated they used H&R for years and got the RALs with no issues. This year there seems to be an issue.

They are doing credit checks that they said they had not done in the past. They also are not telling the customer that they are doing a check nor that they can be declined if they have bad credit.

I can only assume they are doing that now because the economy is so bad and they want to make sure if there are any issues with the refund that the customer can pay back the loan.


I don't know why the fees were so high. That is what people were putting in their posts on the consumer affairs board.

Have you read any of the complaints?

Here is one...

[img]/forums/attachments//bsm1_396.jpg[/img]

The person stated $300 for nothing. Maybe their filing is more complicated so their fee was more.

Here is another one quoting $300....

[img]/forums/attachments//bsm2_192.jpg[/img]
I am not making these up. These are posts made by consumers that have been denied the RAL but still had to pay the fees that applies.

If they were refunding the fee when they were denied then I don't think consumers would be as upset but they are not refunding the fee.

Go and read the complaints. There are a LOT and they are recent.

ETA: I found this discussion on Yahoo Questions and Answer.

It seems a lot of people are getting the run around.

And another article with comments.

I think it basically comes down to the bank that backs these loans are not as willing to accept people as before. I have read it may have to do with the filers that have EIC, Extra Income Credit, as part of their filing.

But the bottom line is that H&R is not telling the customer that 1) they are doing a crdit check and 2) They can be denied if they don't pass the check and 3) If they are denied that they still have to pay the fees for the RAL even though they don't qualify for it.

I believe I have given more than enough information about the problem that seems to be falling on the consumers using this option this year. Just because some people have had no issues does not mean others are not and if you would read the links then you would see it appears to be a wide spread problem. Many complaints are from customers that used this option in the past with no issues.

I was only trying to warn people that it may happen to them. Knowledge is power, as they say.

It is no different then the other forums here trying to get the word out about illegal payday loans or bad collection practices from collection agencies.

The complaints are on other sites but they are out there.

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A person's tax return can state that they are getting a refund, but if the person has the following, the IRS can legally grab the refund:

Back taxes (fed or state) due
Child Support
Deliquent Student Loan
ANY government debt

In a way, I can see why H&R is checking credit, as a person could apply for and get a loan--and not tell them that they have any of these debts. But at any rate, the fees are still thru the roof.

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I don't have any issue with them checking credit but they should disclose that to the customer and tell them that if they are denied that the fee is the same.

I think many customers may not have taken the chance and just filed themselves since the wait time is the same.

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Being a tax accountant...I always shudder when I hear stories of people paying these ridiculous amounts for an "RAL."

Here's the scoop...MOST people - meaning those who just have a w-2...maybe some student loan interest, and yes, even a mortgage...can file on-line themselves! Much of the software programs walk you thru it, asking questions that will determine the next set of questions (if necessary). Personally, I like Turbotax...TaxAct is okay, but sometimes it can be tricky to navigate...MOST software companies will let you e-file the federal for free.

IF YOU FILE YOUR FEDERAL RETURN BY 11:00 AM ON THURSDAY, and it's accepted by the IRS (meaning no errors), then if you selected direct deposit for your refund, then you will get your refund by the FOLLOWING FRIDAY!! States are usually quicker...and free too, if you go to the states website and file thru them.

IMHO - I wouldn't pay the fees for the RAL if you can wait until the next Friday.

Happy Taxing! j/k

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