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FOR IMMEDIATE RELEASE
February 2, 2009
Contact: Peter Clark, 512-463-0532 (o), 512-417-9262 (c)
Villarreal Cautions Consumers on Tax Refund Anticipation Loans (RALs)
Urges Texans to Report Illegal Practices, Consider Low-Cost Alternatives
San Antonio - As more Texans begin filing their 2009 tax returns, Representative Mike Villarreal urges consumers throughout the state to report Refund Anticipation Loan (RAL) providers that violate Texas law. The lawmaker also encourages working families to consider the 0% APR RefundExpress Alternative RAL offered at several Volunteer Income Tax Assistance (VITA) locations in San Antonio.
"Texas families have worked hard during this difficult year," noted Rep. Villarreal. "They deserve to put every dime they earned into their pockets instead of paying high fees to take home their own tax refunds."
Providers of RALs -- loans offered with high fees and triple-digit interest rates based on workers' anticipated tax returns -- must meet state requirements established under legislation authored by Rep. Villarreal in 2007. The law requires RAL facilitators to practice "truth in advertising" and inform taxpayers that they are signing up for a loan, disclose the full cost of the loan, the time they save by taking a RAL instead of filing electronically without a RAL, and the alternatives to RALs. The legislation also requires RAL providers to register with the state Office of Consumer Credit Commissioner (OCCC) and tasks the OCCC with regulating the industry.
RAL providers target workers desperate to receive their tax return a week or two early to pay the rent, repair a car they need to get to their job, or meet one of the other daily challenges families face during these difficult economic times. Nationwide research shows that a full two-thirds of these customers do not realize they are taking out a loan.
Rep. Villarreal urges consumers to report to the OCCC any RAL providers that fail to comply with this state law. The OCCC's Consumer Helpline is 1-800-538-1579 and the website is
www.occc.state.tx.us.
Rep. Villarreal also encourages working families who are seeking a RAL to consider the 0% RefundExpress Alternative RAL offered at several volunteer-run free tax-preparation sites in San Antonio. The RefundExpress consumer must sign-up for a membership in generations federal credit union and make a $5 deposit from the loan into a savings account. Consumers may call 2-1-1 for additional information.
The RefundExpress is available at the following Volunteer Income Tax Assistance centers in San Antonio:
Ed Cody Library
11441 Vance Jackson Rd.
SUN and TH: 12 pm - 5 pm
TU: 2:30 pm - 7 pm
W: 1 pm - 5 pm
F: 10 am - 5 pm
SAT: 10 am - 2 pm
Goodwill @ San Pedro
13311 San Pedro
M thru TH: 2 pm - 8 pm
F: 10 am - 4 pm
SAT: 11 am - 3 pm
Goodwill @ DeZavala
12332 W. IH 10
TU and TH: 2 pm - 8 pm
W and F: 10 am - 4 pm
SUN: 11 am - 3 pm
ACTN @ Claude Black Community Center
2805 E. Commerce
M thru TH: 12 pm - 7 pm
F: 1 pm - 5 pm
SAT: 10 am - 1 pm
H-E-B 22
1015 S. WW White
TU and TH: 1 pm - 8 pm
F: 9 am - 4 pm
SAT: 9 am - 3 pm
H-E-B 36
6818 S. Zarzamora
TU and TH: 12 pm - 7 pm
W and F: 9 am - 4 pm
SAT: 9 am - 3 pm
Bazan Library
2200 W. Commerce
M and W: 12 pm - 4 pm
TU, TH and SAT: 10 am - 5 pm
SUN: 10 am - 2 pm
Collins Garden Library
200 N. Park
M, W and SAT: 10 am - 5 pm
TU: 12 pm - 4 pm
TH: 12 pm - 7 pm
Forest Hills Library
5245 Ingram Rd.
TU and W: 12:30 pm - 3:30 pm
TH and F: 10 am - 3:30 pm
SAT: 10 am - 5 pm
Goodwill @ Fredericksburg
3401 Fredericksburg Rd.
M thru TH: 2 pm - 8 pm
F: 10 am - 4 pm • SAT: 9 pm - 2 pm
Henry A. Guerra Library
7978 Military Dr. West
M, F and SAT: 10 am - 5 pm
W: 1 pm - 5 pm • TH: 12 pm - 7 pm
Neighborhood Place
3014 Rivas
TU thru TH: 12 pm - 7 pm
F: 9 am - 4 pm • SAT: 9 am - 3 pm
YWCA
503 Castroville Rd.
M thru TH: 12 pm - 8 pm • SAT: 9 am - 1 pm
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