RAPID ANTICIPATION LOAN

(RAL)

How It works:

A RAL is a loan base on what you expect to be your Federal Income Tax Refund.   In reality, the fastest way to get your income tax refund from the IRS is about 8-15 days for electronic filing direct deposit and 25 -30 for electronic filing check by mail.

If you step in our office (or any tax preparation office) and apply for a Rapid Anticipation Loan (RAL) what you are doing is having your taxes done and  at the same time having a loan application file with a lender.

If you are approved, the lender, through our office, will give you a check for the amount of your expected refund minus our fees and the lender fees.

the lender will get pay 8 - 15 day later, when the IRS release your refund as a direct deposit in an account opened by the lender.

If you get the loan and the IRS direct deposit your refund as plan, we can say that everything when smooth and fine.

but if the IRS for whatever reason does not  release (direct deposit) part or all of your expected refund, then you personally are liable for the loan you took, and if you no pay before the dateline the lender sets, collection activity and reporting to credit bureau will start.   

Fees:

The RAL is certainly not the only way to go through the process of filing your taxes and receiving your refund, but certainly is the least affordable way to do it.

Financial fee which is going to be calculated base on the amount of your expected loan.

Administrative fee for setting up the account in which the IRS is supposed to direct deposit your refund. Administrative fee normally is a flat fee, which means that it will be the same fee amount  for every person who applies for a RAL regardless of the amount of the LOAN.

Transmitter fee is a fee charge by the software company from which we go through  the electronic filing transmitting process.

Software Technology fee,   a fee charge by  the lender.

although we get a portion of the transmitter fee, the above four fees in conjunction, are known simple as "bank fees" 

and on top of the "bank fees" we will charge our own tax preparation and rapid refund fees also known as convenience fee.

financial fees

admin fees

transmitter fees

software tech fees

tax preparation fees and

rapid refund fees

all together will add up to make your total charge for a RAL.

A RAL total cost may be as much as 3 or 4 times higher than a regular "send by mail paper return" which is the most affordable way to file your taxes. and from which you have to wait for your refund check up to 8 weeks to get.

PROS and CONS

in Our opinion the Ral only have two cons, very high price in comparison with other filing options and IF THE CASE having to pay money back for a loan that was not funded by the IRS.  But, if you know that you are doing your taxes right and that you do not owe back taxes, child support and/or a student loan  that situation is unlikely to happen.

Our pros,  having access to money fast, not having to pay up front fees for tax preparation and electronic filing and if RAL is not approved financial fees are not charge, in other words your total fees get lower.   You are not obligated to apply for a RAL is a choice, your choice,it is only one more option amount many.