Does anybody know anything about federal regulation in lending?

[renie408]

I am trying specifically to find out if there is a move to federally control the APR allowed for small loans. I am at a business training seminar for the tax prep firm I work for. A big part of our business are RAL's. Due to the nature of the beast, they end up having a high APR. Out of 25 trainees here, there are 24 Republicans and me. The company took us to dinner tonight and I got to be crammed into a minivan with ten angry Repukes screaming about how Obama was going to put everybody out of business. How he would be BAD for small business. I finally said that if my small business made in excess of $20,000 a month of pure profit, I could probably tolerate the 3% increase in taxes I would pay at that level. Then the woman next to me said that if Obama gets elected, all tax prep places that rely on RAL's for a large part of their income would be out of business because the Dems are going to push through federal regulations limiting the allowable APR so low that it will make it unfeasible for banks to fund RAL's. I am thinking that maybe it is related to federal control of predatory lending, but while I can find a lot about MORTGAGE lending, I can't seem to find anything that refers to RAL's.

I don't want a lecture on the morality of RAL's. I have my own problems with it, but I need this job. I Googled every combination of APR, federal and regulation that I could come up with and got nothing. There is also no specific mention of RAL's and federal regulation, either. Or at least that I could find.

[Cerridwen]

1. Edit - found it. "Refund Application Loan" That it?

[renie408]

2. Sorry, 'Refund Anticipation Loan'. n/t

[Sadie5]

3. Banks are not going to lower any interest rates

When they can make tons of money off the backs of those who could use help the most. The interest rates were slashed again today but try to get a lower rate on any kind of loan. The banks are the only ones making any money off of the slash in rates today. Predatory lending rates have been mentioned but I bet that is as far as it goes. Biden should address this and tell us what he will do about it as he signed on to bills which allowed such rates. This is one thing about Biden I wish could be explained and what he will do about it. A reversal in the bill he signed would be nice.

Read an article the other day about credit cards and how those rates might never come down.

[renie408]

5. The only thing I can find is where the IRS was debating trying to ban RAL's

But they don't give a shit about the APR, it's the fact that a lot of preparers are tempted to falsify returns to get a big refund for a client so that they can sell the RAL. This causes the IRS no end of headaches.

I seriously cannot find anything about it.

[Cerridwen]

4. According to the link below, the regulations are coming from

Treasury and the IRS.

http://www.thefederalregister.com/d.p/2008-01-07-08-2

Other than that, I'd demand that woman supply you with proof of her assertions; something NOT from fox noise or r/w smear sites. I'd also tell her that if she doesn't plan on screwing over her clients, perhaps she shouldn't be worried about getting busted for something she's not doing. Hey, it makes as much sense as her noise.

Other than than, I didn't come across anything specific to the Democrats. Perhaps the link I provided will you give you some additional sources to check.

Oh, you have my sympathy for having to take a job such as that. I had to quit my tax-prep class because learning about the politics behind the tax code was raising my blood pressure and destroying my stomach. :(

[renie408]

6. I had heard the thing about the IRS..

like I said above, their main concern has nothing to do with APR or predatory lending, it just causes them a hassle because of preparers falsifying returns.

Honestly, I like doing tax work and I like the customers I have. To me it is like a giant puzzle and so many of the people are great to work with. Also, every return is like a mini-soap opera and all the details represent bits of people's lives. And it is seasonal and works perfectly with the rest of my life. I do have a moral quandary with the fees. But what I do is make sure that every customer knows exactly what they are getting charged for everything, what goes to the firm and what goes to the bank, etc, before they make a decision. I also quote them a straight return with the IRS sending them a check instead of getting one from us. I figure if people are informed, they are at least making a decision. But honestly, they want the money. It is two weeks after Christmas and they are broke and they want the money so bad, they don't care about fees.

[Cerridwen]

7. I enjoyed a lot of the tax work. Some of it made me want to pull out

my hair. But that was more clients that the actual taxes. I wasn't in it long enough to get really burned out. :D

For future reference and if it's feasible, find a good CPA who does taxes and needs a couple of preparers during the season(s). They're usually small businesses so you can get to know your clients but you don't have to worry about selling anything. Of course, you gotta watch how they pay. Just an idea. :hi:

I wish you luck with your current cohorts. You've got a stronger stomach than I.

:D

eta: phooey, I forgot to say that the link I gave you looks like a rules change request rather than something coming from either party. That's a whole lotta different from "Democrats are going to...". It's the agencies themselves trying to close the loopholes.