|ASSOCIATION OF INDEPENDENT CONSUMER CREDIT COUNSELING AGENCIES|
Consumer credit counseling, debt management, and financial education services provided by non-profit credit counseling companies designed to establish equilibrium between consumers, creditors, and member agencies for the successful rehabilitation of debt-challenged families and individuals.
AICCCA Press Release
AICCCA Says Patience Pays Big Time - Just Say No to Refund Anticipation Loans
Fairfax, VA - February 4, 2010 — Consumers who overpaid their income tax in 2009 and are anxious to get their refunds are the target of refund anticipation loan advertisements. The Association of Independent Consumer Credit Counseling Agencies (AICCCA) says that consumers should resist the temptation of these loans and decide the best way to use the money for their personal financial situation.
The appeal of the refund anticipation loan is that consumers can get their money very quickly. While it does take about six weeks to get a refund for those that send paper returns via mail, consumers who file electronically and choose direct deposit can cut that time to 10 to 14 days. The fee charged to get your money a few days sooner using a refund anticipation loan can be the equivalent of a 250 percent annual interest rate.
"Consumers who use refund anticipation loans will pay a hefty fee to get their own money," said Dave Jones, president, AICCCA. "Exercising patience and creating a plan for the best use of the money can make a difference."AICCCA offers three suggestions to use your refund wisely:
Finally, an annual review of your W4 form is a good idea if you regularly receive large refunds. Refunds give Uncle Sam an interest free loan every year. Decrease the amount you are withholding by increasing your deductions and earn that interest for yourself. Target this extra money for your savings account and check back in one year for the "refund" you won't have to wait - or pay - for.Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.