Teilhet calls for tougher rules for 'refund anticipation loans'

Rep. Rob Teilhet (D-Smyrna) will introduce legislation this week targeting high-interest loans granted against expected income tax refunds.

Teilhet, a frequent critic of industries he considers to be predatory lenders, said the bill requires firms that offer the loans to fully disclose the terms and make borrowers aware that they are entitled to receive their tax refunds free of charge from the IRS in eight to 15 days by direct deposit without getting a loan. Interest on these loans can reach triple digits on an annual basis.

"For too long, Georgia and other states have allowed predatory lenders to deceive taxpayers into loans soaked with extravagant fees and triple digit interest rates," Teilhet said. "By passing this bill, Georgia will say "yes" to full disclosure and "no" to deceptive sales pitches. It is time that Georgia stood up to the predatory lenders that have done so much damage to our nation's economy."

If you REALLY want to know more, Teilhet has his own YouTube channelwhere he discusses the bill.