RedGear Technologies, which markets the TaxWorks and 1040Works tax packages, is starting a program to provide cash advance loans to customers who expect federal income tax refunds. The Tax Season Cash Advance is being provided by the Schear Lending Group and Atlas Financial Services.
RedGear said loans would be $1,000, $1,250 or $1,500, depending on the refund amount and state and that fees would start at $43. The program is coming on the market as the traditional refund anticipation loan has become much scarcer because of regulatory pressure on banks. Schear is a non-bank lender that funds consumer loans.
RedGear said the program would be available in "select states" and that the loan amounts would vary by state. All electronic return originators must be approved by Citizens Bank or New Capital Bank to be eligible to participate. Training will be provided by RedGear and Atlas. RedGear said preparers would have no out-of-pocket expenses and that fees could be deducted from the advance.
Last modified on Sunday, 02 June 2013