Model Refund Anticipation Loan Act (2008)

Model Refund Anticipation Loan Act (2008) prohibits refund anticipation loan (RAL) and refund anticipation check (RAC) add-on fees charged by tax preparers (bank rate exportation does not apply to the tax preparers).  Also included are registration and bonding requirements, and restriction of registration to preparers whose primary business is tax preparation. The Model Act also prohibits debt collection abuses and prevents referrals to check cashers. It provides for mandatory disclosures orally, in wall postings, and in a disclosure sheet accompanying the RAL application.  Consumers have a private right of action to recover damages, costs, and attorneys fees.  Provisions have been largely adopted in Arkansas, Illinois, Maine, Maryland, and New York.