LESPFCU can now offer their members, and anyone visiting their VITA site, free tax preparation as well as an instant money loan for a $25 application fee and 10 percent interest until the tax refund proceeds are recieved (about 8 dollars for a $2,000 loan over two weeks).  In contrast, paid tax preparers may charge up to $248 for the same services.  The credit union is currently expanding its tax preparation services by adding an additional site and increasing its hours of operation. 

Based on recent Woodstock Institute research, 38 percent of all EITC recipients in the Chicago region used RALs, costing these communities over $48 million in lost income.  If a comparably priced product to the one offered by LESPFCU was available to these same Chicago region EITC recipients, it would result in over $33 million dollars in savings in addition to making the benefits of credit union membership available to hundreds of working families.

For more information on RAL usage rates among ETIC recipients throughout Illinois and the impact of high cost tax preparation and refund anticipation lending:

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