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Banks Restricting Rapid Refunds

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posted on Jan, 19 2011 @ 11:58 PM
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Yep. I got the news of this today as I stepped up to proudly do my American duty .... File my taxes. We pay extra all through the year so we are able to get a refund rather than owing more. I know I am not the only one who uses this money to play catch up from Christmas and other bills in general. We alwayd use the rapid refund because we usually need it yesterday.
Not this year and not just for me either.

Due to stricter IRS rules and regulations banks have gotten "cold feet" about handing you cash and waiting for your check. Obviously the banks are getting skittish about Uncle Sam being able to pay his debt to them let alone everyone else.

You can file for a regular loan which my tax guy said they are charging around $70.00 just to run your credit. If you fail the check they keep your money.

Here is the article link: www.ninetaxes.com...

Here is a snippet from the linked article: th new IRS rules causing banks to reconsider the funding of such loans, the chances of being denied for an RAL have grown. Many people have found themselves leaving the tax preparer’s office with an assumption they would have their money within a day or two, only to find out that they would need to wait 8 to 15 days or even longer to receive their refund since their loan application had been denied by the bank. Because of changing loan markets, this scenario happened not just to first-time RAL customers, but to consumers who had been being approved for these loans year after year.

My reason for posting this is two fold. I wanted to let others know that their usual (without credit check) RAL will not be available as quickly as usual.

The other reason is that I found it peculiar that the banks have obviously lost faith in the Government to send out the promised check. What do they know that we don't? This administration bailed out a ton of these "no fail" institutions. They should be like peas and carrots.





posted on Jan, 20 2011 @ 12:04 AM
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nooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo



posted on Jan, 20 2011 @ 12:12 AM
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I have not experienced this yet, nor have I heard about it.

The thing that makes me doubt whether the bank is actually scared is they are having people apply for a personal loan while waiting for check to clear. That doesn't make any sense to me. For an out of state check over 5,000 the longest you will have to wait is 15 business days, well in my state anyway. Typically government checks are cleared sooner, and the above is in the most extreme case. A loan typically takes about two weeks minimum to process which is no different than waiting for the check to clear.

I think the bank just found themselves a way to score 70 dollars real quick from those that need the money and are in a hurry to get it.



posted on Jan, 20 2011 @ 12:21 AM
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Originally posted by FeeBanks
nooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo


Star for you because I am still laughing. I did the same thing at the book keeper's office tonight, only in slow motion like a bad Rocky movie!



posted on Jan, 20 2011 @ 12:27 AM
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reply to post by searching4truth
 



Good point on the bank making a quick buck.

Meanwhile the IRS gets to eke out a tad bit more interest for those who can't pass the credit check. And in today's economy I imagine that number is sky high.

Nothing better than a win/win scenario!



posted on Jan, 20 2011 @ 12:28 AM
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just another way for them to make the money surely you could wait a couple of weeks what a shame you can't charge them the interest you miss out on hey. Sounds like it is getting worse every day over there guys when are you going to throw your government out of office and elect someone who isn't tied to the usual suspects.



posted on Jan, 20 2011 @ 12:47 AM
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The business is to make money, they will make money and erect policy that facilitates this end -

They make money by holding money, they make money by "encouraging" people to take credit and bounce checks

ALL HAIL, BOOTS and FUN!!!



posted on Jan, 20 2011 @ 12:50 AM
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Originally posted by Janky Red
The business is to make money, they will make money and erect policy that facilitates this end -

They make money by holding money, they make money by "encouraging" people to take credit and bounce checks

ALL HAIL, BOOTS and FUN!!!


you pretty much hit the nail on the head... capitalism at its finest , FREE MARKET ENTERPRISE will now require all of us to take out a line of credit for 14 business days



posted on Jan, 20 2011 @ 12:54 AM
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Originally posted by FeeBanks

Originally posted by Janky Red
The business is to make money, they will make money and erect policy that facilitates this end -

They make money by holding money, they make money by "encouraging" people to take credit and bounce checks

ALL HAIL, BOOTS and FUN!!!


you pretty much hit the nail on the head... capitalism at its finest , FREE MARKET ENTERPRISE will now require all of us to take out a line of credit for 14 business days


Thank God there is another sane human out there -

Adam Smith explained that capitalism cannot survive without ethics and some sort of morality -

Wait until some folks find out the banks are immoral and without ethics!


Maybe the banks will do something unethical one day so everyone can see the state of affairs


You are free to go and $@#$@ yourself folks

edit on 20-1-2011 by Janky Red because: (no reason given)



posted on Jan, 20 2011 @ 12:56 AM
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I would surmise this has to do with the number of tax scams that have been pulled in recent years that usually use rapid refund returns that end up causing to lay out a lot of money in refunds on bogus returns.

This usually is the result of a filer claiming to have worked for a legitimate business that went out of business in that current tax year, and a claim that they never got a W-2 as a result.

A smart filer working with a savy tax preparer can get upwards of 6,000 to 8,000 from the IRS without having paid it a dime.

In years past the IRS has paid these dubious claims especially when they are filed by a paid tax preparer with a paid preparer's number or Federal Employer Identification number.

However once the refund money is paid it's almost impossible to recover and many small rings net well over a 100K each tax season by filing multiple times.

So I really would be more inclined to suspect it's got to do with combating the fraud that takes them for hundreds of millions each year.

Meanwhile the government is raking in more money than ever. Most W-4 wage owners may not have noticed but your payroll taxes went up significantly this year, and in to me what truly is a troubling move, they lowered Social Security Taxes significantly to off set the sizeable increase in payroll taxes. So even while actual taxes have gone up, most people will see a slightly larger net check, but this is because you are now paying a lot less in Social Security. Since Social Security pays retirement benefits based on how much you paid in to it, and Baby Boomers are starting to retire by the droves and Social Security technically could use the money to pay their benefits, that's a real perplexing move that I think is far more suspicious than curtailing rapid refunds.



posted on Jan, 20 2011 @ 01:36 AM
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reply to post by Kangaruex4Ewe
 

Maybe you didn't notice, but the "lame duck" Congress in December passed legislation that alters the tax code.

The IRS now has to re-print the tax forms to account for the additional credits, deductions, etc. that were part of the expiring "Bush tax cuts" that were scheduled to expire.

The delay is the result of changes that caught the IRS flat-footed. There is no conspiracy to hold your money.

The banks do not have your money, the Department of Treasury has your money.

deny ignorance

jw



posted on Jan, 20 2011 @ 01:39 AM
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Originally posted by Kangaruex4Ewe


Star for you because I am still laughing. I did the same thing at the book keeper's office tonight, only in slow motion like a bad Rocky movie!


I can not believe you disparaged Rocky movies!
But then again, Rocky has a special meaning to us Philadelphians (dont actually live there, but ya know...)

I worked in collections for a few years and one of my clients was H&R Block. I had hundreds of hrblock loans that were assigned because of seized tax returns due to back taxes, owed child support owed federal student loans. HRBlock did the necessary credit checks but these items didnt show up (student loans proably did).
So the bank behind the quick tax loans felt comfortable with making the loan, then when the checks came in and all funds were withheld, the banks were out of luck to get their money back.

Most people were sympathetic and agreed to pay back there loans under a different repayment plan though, but I can see how banks would be hesitant now, especially with the bad economy.

If my tax return was withheld due to student loans or back taxes, I woldnt have the cash on hand to repay the loan in a timely manner.



posted on Jan, 20 2011 @ 02:48 AM
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Originally posted by jdub297
reply to post by Kangaruex4Ewe

 


Maybe you didn't notice, but the "lame duck" Congress in December passed legislation that alters the tax code.


Actually I did know. Which is another reason those who are filing long form can't even file until near the middle of February. forum.minneapolisfinder.com...


The banks do not have your money, the Department of Treasury has your money.


You are 100% correct. I don't put any money in any bank which is why I never claimed they had one red cent of mine. When they tax me it says "federal and state" not Bank of America. That would just be silly.



deny ignorance


I do my best.
edit on 1/20/2011 by Kangaruex4Ewe because: (no reason given)



posted on Jan, 20 2011 @ 02:49 AM
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Can't spend what you don't have...

Now if we start demanding that the government puts special government financial centers in place to give out gold instead of worthless paper we would be getting somewhere.

I always hated how you HAVE to have a bank account in this life to receive funds.



posted on Jan, 20 2011 @ 02:56 AM
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reply to post by no special characters
 

I agree. I quit using banks about 5 years ago. There are ways to recieve funds without a checking account though. Western Union amd Green Dot both offer easy options that are widely available now.



posted on Jan, 20 2011 @ 03:05 AM
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reply to post by youdidntseeme
 


My heartfelt apologies! I would never do such a thing. It just reminded me of when they would slow-mo the punches.
I am kind of fond of the movies myself. I guess I could have used corny instead of bad. lol

They usually run our forms through to make sure it doesn't bounce back with an "issue". I guess maybe they don't do that everywhere or some accidentally make it through. I can see not wanting to take a loss for sure though so thanks for telling yet another side.

edit on 1/20/2011 by Kangaruex4Ewe because: (no reason given)



posted on Jan, 20 2011 @ 03:34 AM
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Just yet another thing that they've figured out how to block to keep people in further debt. The little kid games continue.



posted on Jan, 20 2011 @ 04:22 AM
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Being in oz may be a bit different, but cant you hold on to your tax $$ until they send you the bill? Open a special account where YOU collect the interest?



posted on Jan, 20 2011 @ 04:32 AM
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reply to post by iceblue20-12
 


To the best of my knowledge you can choose to settle up at the end of the year if you are self employed. I am unaware of any possibilty that this is possible if you are under someone else's employ. Then they get their cut right off the top.



posted on Jan, 20 2011 @ 04:38 AM
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reply to post by Kangaruex4Ewe
 


Ok yep makes sense,i was self employed for ten yrs and would always wait till the bill came,now iam on wages so my tax is paid for me,so pretty much the same deal.Thanks for the info.
Back to your op, i feel as others have said,what do the banks know that you guys dont? Gov money no good,or just another way to squeeze more cash out of you.Am waiting for tax refund also,know how you feel.




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