Virginia Attorney General Jay Jones has issued a notice to residents about their rights regarding tax refund anticipation loans as the tax season begins. These loans are secured by an individual’s federal or state income tax refund and are often marketed during this period.
“In these challenging economic times, many Virginians may be tempted by offers of tax refund anticipation loans,” said Attorney General Jones. “It is important that consumers research and consider all information about these loans in advance, including the loan fees and the loan’s annual percentage rate.”
State law requires that anyone applying for a tax refund anticipation loan must receive a disclosure before completing the application. The law also states that customers cannot be required to enter into a loan arrangement to complete a tax return. Borrowers have the right to rescind the loan on or before the close of business on the next business day by returning the check or loan money to the lender or facilitator.
The Attorney General’s office provides consumer protection resources, including assistance with identity theft and fraud reporting, which can be accessed through its official website. The office also supports civil rights enforcement, victim assistance programs, and legal advocacy for issues such as human trafficking and domestic violence. It serves all residents of Virginia by offering legal counsel to state agencies, promoting public safety, and defending constitutional rights.
For more information about your rights regarding tax refund anticipation loans or to file a complaint, residents are encouraged to contact the Consumer Protection Section of the Attorney General’s office.
