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Should you sign a loan or pay a fee to get your tax refund early? Here's what you need to know

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  • 🞛 This publication is a summary or evaluation of another publication
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The average tax refund amount was just over $3,100 last year. For many Americans, that money can bring wonders: it could pay several months' rent, be a downpayment for a car, or allow you to buy several shares of tech stock.
The article from AOL Finance discusses a scam where individuals are tricked into paying fees for loans that do not exist. Scammers contact potential victims, often through unsolicited calls or emails, offering loans with attractive terms. They require the victim to pay an upfront fee for processing, insurance, or taxes before the loan can be disbursed. Once the fee is paid, the scammers disappear, and the promised loan never materializes. The article warns that legitimate lenders do not ask for payment before loan approval and provides tips on how to avoid such scams, including never paying for a loan in advance, checking the lender's credibility, and being cautious of unsolicited loan offers. It also advises reporting any suspicious activities to the Federal Trade Commission (FTC) and local authorities.

Read the Full AOL Article at:
[ https://www.aol.com/finance/sign-loan-pay-fee-tax-080100188.html ]