THE ECONOMIC STIMULUS PACKAGE THIS WEEK вЂ¦ GRASSLEY, SCHUMER WARN PAYDAY LENDERS: STAY AWAY FROM AMERICANSвЂ™ REBATE CHECKS WITH PRESIDENT BUSH SET TO SIGN
With the government planning to Mail Rebate Checks To assist Jumpstart Economy, Scams May EmergePromising Money Up FrontвЂ”however with a CatchIn Letter, Senators Urge Top Payday loan providers And Tax Preparers To Steer Clear ofPredatory TacticsSimilar toвЂњRefund that is so-Called Loans,вЂќ Payday Loans on Rebate Checks CouldCarry Interest Rates Far Higher Than 100percent
WASHINGTON, DCвЂ”With Congress passing a financial stimulus package final week that thePresident is anticipated to sign up Wednesday, U.S. Senators Chuck Grassley and Charles E. Schumertoday warned the nationвЂ™s leading income income tax preparers and cash advance businesses to stay away from socalledвЂњinstant rebatesвЂќ which could bilk Americans out of huge portions of the rebate checks.
The senators stated today that families whom should get big rebate checks within the next few monthsneed to beware claims of upfront loans who promise refunds with no wait, but which come withmassive interest levels and concealed fees. The senators noted that taxpayers вЂ“ specially families withchildren which are due to obtain straight back the largest amounts вЂ“ could miss out on a huge selection of dollars if luredby these cash advance companies.
Grassley stated, вЂњThese rebates are designed to place profit peopleвЂ™s arms, maybe maybe maybe not increase their financial obligation.
Taxpayers should comprehend that refund anticipation loans are simply that вЂ“ loans. As loans, they cancarry extremely high interest costs that make sure they are a rather bad deal when it comes to taxpayer.