New York CUs Want Check On Tax RefundLoans
ALBANY, N.Y. - (05/02/05) -- Consumer and senior citizensadvocates have joined with the New York CU League to lobby statelawmakers to help curb predatory practices in the market for taxrefund anticipation loans. A group called New Yorkers forResponsible Lending said the interest rates charged on tax refundloans can soar to as high as 700% on an annual basis, in violationof the state's 25% usury ceiling. The New York league, AARP andconsumer groups want legislation to close loopholes in the state'sfinancial regulation that allow RAL providers to circumvent theusury ceilings. The state Assembly is scheduled to hold a hearingon the subject Monday.