Consumer Credit Regulation: 15.4.5.2 Where Consumer Liable for Shortfall in the Refund
A key indicator that an assignment may in fact be a loan is if the transaction requires the consumer to repay the lender if the government fails to pay the full refund.148 Either the lender will be paid the principal plus interest by the IRS’s payment of the refund or the borrower will pay that exact same amount. There is no uncertainty in the amount of the payment. Neither the repayment itself nor the amount of the repayment is contingent upon a future event.