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St Croix, United States Virgin Islands

MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Refund Anticipation Loans

Posted by WARREN MOSLER on December 27th, 2010

Interesting!

Could move income and spending from q1 to q2 ???

H&R Block

  • 5yr 600 (+65bps)
  • The Office of the Comptroller of the Currency told HSBC Hldgs PLC not to make refunds-anticipation loans (RALs)
  • This prompted the bank to end an exclusive contract w/ HRB 3yrs early

3 Responses to “Refund Anticipation Loans”

  1. strawberry picker Says:

    MY RAL was the only way I was going to buy the kids some new school clothes at abercrombie and fitch next year, now I will have to hit the salvation army and goodwill stores and get last years fashions, my children will never let me live this down :( We came to america to buy nice new fashionable clothes – not seconhand trash!

    http://www.businessinsider.com/months-unemployment-higher-9-percent-2010-12

    Unemployment over 9% bout to last longer than any other post-depression recession, why on earth are policies being followed to maximize the pain for my black and brown brothers and sisters? Do they want to start a war and violence?

    Reply

    strawberry picker Reply:

    PS those payday lenders aren’t giving me money like they used to either, something about delinquency rates increasing, if you guys want to keep those retail sales figures looking pretty so idiots overseas buys our debt and sends us stuff(warrens famous imports are a benefit), you suckas better start giving me and my homies some more money so we can shop til we drop – who is the head idiot in charge at da whitehouse who don’t understand if he don’t give me money I can’t go buy stuff and I might have to get a job and start building widgets dat we export so I can get stuff (and as warren says – exports are a cost – we don’t wanna do dat!

    Reply

    Matt Franko Reply:

    Strawb,

    I dont think the timing lines up that way, most people file before April 15th and back to school shopping typically occurs in August time frame. RALs I believe are offered to HR Block filers at ‘checkout’ and if the taxpayer is due a refund, for instance HRB would offer them the money on the spot at very high interest rates I’m sure. It may only cost the individual filer a few 10′s of dollars but it probably adds up into 10s/100s of millions for the banks that underwrite it with little credit risk.

    This is the first OCC edict that could possibly be interpreted as anti “bankster” that I’ve heard about in what seems like a long time… at least on the surface it looks pro-consumer can you believe it?

    Resp,

    Reply

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