It seems unlikely that on average, taxpayers “face urgent financial needs, such as paying bills or emergency expenses” that necessitate these loans. If a person lives paycheck to paycheck for the entire year, what makes a specific three to six period so different? I would argue that it is impatience and imprudence (or possibly a lack of understanding the fees of RALs) that causes their widespread popularity. My guess is that the mindset is ‘I’m playing with the house’s money’, so it’s not a big deal to ‘tip the dealer’ a few bucks.
Ian
of FL
@
Jan 24, 2008 15:17:20 PM
Why is this legal?
Sounds like another example of how expensive it is to be poor. Same category as payday loans, check cashing, overdraft fees and the lottery.
Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.
Ian of FL @ Jan 24, 2008 15:17:20 PM
of NC @ Jan 24, 2008 10:04:15 AM
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