Geoff Smith, Sarah Duda, and Katie Buitrago

This report found that high-cost refund anticipation loans (RALs), which allow borrowers to receive their expected tax refund in one to three days, cost Illinoisans more than $114 million in 2006, with tax filers in African-American communities 3.5 times more likely to use RALs than the state average. The report is based on an analysis of 2006 tax data and recommends policy changes, such as a RAL fee cap and better funding of free tax preparation, to reduce the negative impact of RALs on low-wealth communities.

press release

Tom Feltner

Describes the distribution of refund anticipation loan lending in the Chicago region using 2003 IRS tax preparation data - the most recent available.  Also provides information on recent innovations in the income tax loan industry such as the holiday and paystub loan. 

Tom Feltner

This report analyzes 2002 IRS tax return data to determine the impact of refund anticipation loan usage among EITC recipients in communities across Illinois. The report also calculates the total amount of EITC dollars spent on high cost tax preparation and refund anticipation loan products in these same areas.