Alternative Eyed For Tax RefundLoans
MADISON, Wis. - (01/03/04) -- Several credit unions are workingwith state officials to offer their low-income members analternative to costly tax refund loans, also known as refundanticipation loans. With tax refund loans taxpayers can obtainloans for the anticipated amount of their tax refund in one or twodays. But by using electronic filing available through a stateprogram, workers could receive the entire amount of their refundalmost as fast, in three to five days, with the costly fees thattypically accompany tax refund loans. Officials with the state'sDepartment of Revenue have joined with the Wisconsin CU League tohelp taxpayers open accounts where tax refunds could be directlydeposited, giving the needy consumers rapid access to theirrefunds. The partnership could also help introduce those unbankedto mainstream financial services. The league is acting as a liaisonwith state officials and referring interested credit unions to therevenue department.