Dimes to Dollars- a military wife's guide to personal finance: Some don't like lack of RAL option

Saturday, February 23, 2008


Some don't like lack of RAL option

Greetings, faithful readers! I didn't realize I haven't updated in over a month. I've been very busy with a new but seasonal job. And I have discovered something interesting. Military personnel are not fond of the Military Lending Act as it pertains to Refund Anticipation Loans. While not as expensive as recurrent payday loans, Refund Anticipation Loans are short-term, high interest loans given in advance of an income tax refund. The loan is normally paid off with the proceeds of the tax refund and the lender pockets the difference. The loans are considered by many to be predatory and are illegal to give to members of the Armed Forces or their dependents.

However, a lot of military personnel don't know that the law has been changed to prevent them from getting these loans, and I have seen many disgruntled service members who don't want to wait for their refunds. Unfortunately, it doesn't seem like they have much choice in the matter, thanks to the new legislation.

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Anonymous MOMM said...

Having never gotten a rapid loan - I seriously don't understand wanting ALL of your money. Very strange.

PS Do you know of a website that lets you opt out of the credit card, etc., offers? We have moved and I'd rather stop them then have one possibly get lost on the way to our new house!

2/24/2008 10:41 PM  
Blogger Super Saver said...


Soon everyone may get the experience of not being able to get a RAL. I read somewhere that the IRS is testing a proposal to eliminate RALs for the 2009 tax filing season (i.e. 2008 tax returns).

2/25/2008 12:11 AM  
Blogger Squirrelpaws said...

Re: opting out...this site:

has some good contact info. Understand, though, that this may not get everything; I believe technically if you have an "existing business relationship" a company can ignore the opt-out request. (The relationship would be considered ade facto 'opt-in'.) So for example, if you are a United frequent flyer, you may get a solicitation forom their credit card. Either way, though, this'll get you 90% there.

2/27/2008 1:24 PM  

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