A couple years ago the Milwaukee Journal Sentinel ran a story about rapid refunds entitled Poor Workers Got Fast Cash at High Prices. I was really shaken by the following.
“Nearly $2 billion in tax credits earmarked for low-income workers instead went to businesses that offer high-interest loans against pending tax refunds [tax refund], according to a new study by the Brookings Institution and the Progressive Policy Institute…. Fees on those loans amount to annual percentage rates of 67% to 774%, according to a recent report by the Consumer Federation of America and the National Consumer Law Center.”