refund anticipation loans by limiting them to an interest rate of 36
percent. Sponsored by Sen. Jeffrey Schoenberg (D-Evanston) and endorsed
by Attorney General Lisa Madigan, the bill would protect lower income
borrowers and Earned Income Tax Credit (EITC) recipients from paying
exorbitant fees to borrow what is essentially their own money.
Low cost tax preparation and refund services are one possible way
credit unions can reach out to new lower income members. Currently,
Northside Community Federal Credit Union hosts a tax preparation site
organized by the nonprofit Center for Economic Progress.
Tax refunds also make a great initial deposit for a new share account
and allow taxpayers to have their tax refunds, which for EITC
recipients may be as much as $3,000, direct deposited quickly and
Link to the today’s Chicago Sun-Times article by Mary Wisniewski Bill designed to kill off tax refund loans.