Link: Bill targets 'instant refund' loans.
The onslaught of tax season has rekindled interest in a bill that would regulate so-called "instant refund" loans.
These are loans offered by some tax preparers that allow consumers to immediately receive their state and federal tax refunds. It's kind of like getting an advance on your allowance, but sometimes with heavy interest and fees.
Rep. Steve Tobocman, D-Detroit, testified about his legislation this week before the House Banking and Financial Services Committee.
Comment -- The Small Business Association of Michigan, which has many tax preparers as members, is neutral on the bill. "The regulatory aspect causes a bit of concern. But the legislation only requires that information be provided; it does not put a cap on what the interest rate can be. So we haven't taken a position on the bill," said Mike Batterbee, director of government relation for SBAM.
Comments