Tax refund on prepaid debit card - another dumb idea

[disneysteve]

I think that if you can avoid having to put your money on a prepaid card, then you should. Its much better to have the money direct deposited into an account of your choice.

If we're talking a relatively small amount, like a couple hundred dollars, it really doesn't matter. So you use it to get gas or groceries. But if you are getting a refund of a couple thousand or more, which is not all that unusual, it seems not such a good idea, though Diolla makes an interesting point that most of us don't think about.

[project15]

Also, the commercials that brag about getting money straight from the agent the day you file rather than waiting for a check from the IRS bother me. I'm sure the agent is taking a hefty percentage of that refund check.

[disneysteve]

Also, the commercials that brag about getting money straight from the agent the day you file rather than waiting for a check from the IRS bother me. I'm sure the agent is taking a hefty percentage of that refund check.

Yes, the refund anticipation loans are big business and cost the customer a fortune. It amazes me that anyone falls for this. It only takes about 2 weeks to get your refund if you e-file. You've got to be pretty desperate to pay 200% interest plus fees to get a refund loan.

[LivingAlmostLarge]

Did I tell you I thought it was stupid? Get this, Liz Pullman Weston thinks it's okay. Sigh. What an stupid idea. I can't tell if she's sarcastic or not

A 401(k) debit card?! It's not so bad - MSN Money

[disneysteve]

Did I tell you I thought it was stupid? Get this, Liz Pullman Weston thinks it's okay. Sigh. What an stupid idea. I can't tell if she's sarcastic or not

A 401(k) debit card?! It's not so bad - MSN Money

I think you meant to post that to my 401k debit card thread. Someone mentioned her article. I actually think she makes some good points. I wasn't aware of all the details. In some ways, the debit card makes more sense than the traditional 401k loans. So if you must borrow from your 401k, the debit card may be the better way to do it.

[Slug]

Also, the commercials that brag about getting money straight from the agent the day you file rather than waiting for a check from the IRS bother me. I'm sure the agent is taking a hefty percentage of that refund check.

Definitely, I mean look at the service they're providing to the overall US economy by getting $ back in the hands of the common man...

/sarcasm

[jodi]

Just found out today that my coworkers girlfriend paid $200 to get her card immediately with a $9000 rebate on it. Oy. His exact words were "What's $200 when you're getting back nine grand?", to which I replied, "It's $200!".

I do my own taxes with Turbo Tax, skip the e-filing (about $20, I believe) and mail in my paper forms. I still always have my rebate direct deposited within two weeks. It's not like you're going to have to wait months here!

[disneysteve]

Just found out today that my coworkers girlfriend paid $200 to get her card immediately with a $9000 rebate on it.

I don't know what is worse - the fact that she paid $200 (plus interest, mind you) for a $9,000 refund anticipation loan or just the fact that she got a $9,000 refund. That's insane. She could have gotten an extra $346 in every bi-weekly paycheck all year long instead of that $9,000 refund.

[jodi]

Actually, I'm pretty sure a huge chunk of that was the EIC (single mom, two kids, mediocre job), so wouldn't have had as huge an increase in her paychecks. But you know the story, it would have been spent if it had been in the weekly paycheck. At least I'm trying to convert my co-worker, who wants to buy a house with this girlfriend in the next year. He's trying to get her back on track regarding saving, not using the credit cards, etc.

[alicia_schutte]

my co worker and her refund debt

Last night my co worker was telling me she lost her refund debit card from H&R Block TWICE is 2 days!!! Plus she has chosen to spend it quickly dispite the car problems and other money issues she is having.

I know where my refund is going... CREDIT CARD DEBT! I will dig myself out of this hole!

[HelpMeFriend]

I got my money direct deposited, so that I only had to write a check to a CD at my local bank branch. I feel stupid now. I had plans for my money. Things that my family had been living without, we must live without for another 6 months.
But, with the extra 32 dollars that I will earn in intrest, I may find something that I could not afford before.
I have put $450 on a credit card, and the rest in savings.
At least I still have some of my refund, since I got it yesterday.

[rapidtax.org]

As a provider of Refund Anticipation loans, I can tell you that most of the people who request one are not the people who have bank accounts. They generally are in debt up to their a$$, about to be kicked out of their house, will have no heat or electricity, and do not have the financial intelligence to understand why they are in this predicament. So is this a good thing or bad? If I keep them from getting kicked out of their house, loosing their car, loosing their job, etc ... am I a bad person?

Everybody needs to look at this from the perspective of the people who ask for one. Don't do the roe vs wade thing.. what do they really need? And I mean NEED!!!

If you really want to help, donate your retirement fund to the underprivileged. Do you think they will do the right thing with it?

[rapidtax.org]

I don't know what is worse - the fact that she paid $200 (plus interest, mind you) for a $9,000 refund anticipation loan or just the fact that she got a $9,000 refund. That's insane. She could have gotten an extra $346 in every bi-weekly paycheck all year long instead of that $9,000 refund.

What if she lost the abilty to get that $9k refund and had to pay it back. It happens. You need to understand the whole refund process before posting a comment like that. If the child she is claiming is no longer avaliable for EIC, then she is screwed.. huh?

Before you post a comment, be sure you know what you are talking about..

[disneysteve]

As a provider of Refund Anticipation loans, I can tell you that most of the people who request one are not the people who have bank accounts. They generally are in debt up to their a$$, about to be kicked out of their house, will have no heat or electricity, and do not have the financial intelligence to understand why they are in this predicament. So is this a good thing or bad? If I keep them from getting kicked out of their house, loosing their car, loosing their job, etc ... am I a bad person?

So we're to think that you (collective you, not you personally) are doing some great public service by giving these people, who according to you are struggling to get by, a loan and charging triple-digit interest rates? What a saint. If this were truly a public service and not a huge money-making endeavor, the interest rate would be comparable to other personal loans. Even charging the average credit card rate of about 18% would be a phenomenal improvement from the 150% or higher rates generally charged.

[tripods68]

This is all finance "gimmicky" type program that take advantage of people who are less educated, less fortunate lower socio-economic class. H&R sees these are their high profit margins especially if loans goes unpaid. That is why them or Pay Day Loans alike are sued constantly by state regulators whom carefully target their products. I guess, considering the options that these people have; either borrow from the MOB, Drug dealers, H&R Block or Pay Day Loans. It's no brainer.