Rip-Offs
There are many ways that companies rip-off working people year-round. We want to help you keep all of your hard-earned money. Here is some information to help you avoid these rip-offs:
Tax Time
You probably heard offers for so-called "Instant Money." They surface every tax season.
These deals are actually expensive loans, not tax refunds. They are fees just to get your own money! If your refund is denied, or smaller than expected, you still have to pay the loan back - in full.
Don't be fooled. Free tax preparation sites are a better deal. They get your tax refund filed electronically and get you ALL of your money, within 7 to 10 days.
Here's how the Rapid Refund Rip-Off takes a big piece of your tax return:
| Typical Preparation Fees . . . . . . . . . . . . . . . . . . . . . . . | $100 |
| Typical Electronic Filing Fee . . . . . . . . . . . . . . . . . . . . . | $ 40 |
| Charges for Refund Anticipation Loan . . . . . . . . . . . . . . . | $125 |
| Padded Loan Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 35 |
| Check Cashing Fees . . . . . . . . . . . . . . . . . . . . . . . . . . | up to $200 |
| Total = | $500 |
To avoid these common rip offs:
- Check out our tips on choosing a paid preparer to avoid these common ripoffs.
- Call The Campaign for Working Families at 215-686-2599 or click here to locate a FREE tax site near you.
Year Round: Top Ten Tricks of the Rip-Off Trade
Learn to spot these tricks and you can avoid becoming a victim! (from Americans for Fairness in Lending)
For more information on spotting and avoiding rip-off's, please call the Pennsylvania Consumer Protection Hotline at (800) 441-2555.
What to do if you get ripped off...
If you were ripped-off in the past with a Rapid Refund or Instant Money loan, and applied for the federal Earned Income Tax Credit this year, we would like to hear your story. Please contact us at 215-851-1700 or email rrobinowitz@gpuac.org.
Call Community Legal Services at 215-227-2400 to report tax filing rip-offs, or visit Community Legal Services in Philadelphia at 3638 North Broad Street (at Erie), Mon., Wed., Friday, 9 am to 12 pm.
Use the Consumer Protection Hotline at 1-800-441-2555 to file a complaint or get more information.
