NYSCUL Exec Testifies On RALs

Michael A. Lanotte, SVP/general counsel with the New York State Credit Union League, testified on behalf of the New York credit union movement at a public hearing on Refund Anticipation Loans (RALs) at the Legislative Office Building here. The hearing was held by the New York State Assembly Standing Committee on Banks. RALs are short-term loans of about two weeks that are secured by the taxpayer's expected tax refund. Fees for these loans translate into triple digit annualized interest rates, according to the New York league, which said that in addition to the RAL fee, major tax preparation firms charge additional fees such as "system administration," "document preparation," or "electronic filing" fees. Lanotte spoke in support of three RAL-related Assembly bills.