Refund Anticipation Loans May Gouge Wallet

By Ric Romero, ABC7 Consumer Reporter

LOS ANGELES (KABC) February 5, 2010—In this economy, cash strapped taxpayers want to get their tax refunds as soon as possible. Many of them will turn to a refund anticipation loan to get their money fast, but as Consumer Specialist Ric Romero points out, it’s a fast way to a big expense.

For the past few years, the number of refund anticipation loans has dropped. But this year, they’re expected to make a big comeback and experts say that’s not good.

In these tough times, quick money is very tempting and one way to get cash fast is through a payday loan, and at this time of year, a tax refund loan. But think twice before getting one.

Attorney Dorothy Herrera Settlage is with the Legal Aid Foundation of Los Angeles and she says that tax refund loans may get you your money in hours, but you’re really borrowing your own money and paying a big price to do so.

"These aren’t fast cash. What they are, are very expensive loans. When you look at the interest rates, even if they are small amounts, the interest rates are huge," said Herrera Settlage. http://abclocal.go.com/kabc/video?id=7261020

Read more

Courthouse Clinic Helps Victims of Domestic Abuse

By Melody Hanatani, Santa Monica Daily Press Reporter

Los Angeles, December 4, 2009 SM COURTHOUSE - The woman appeared to be in denial, dismissing assertions that she needed a restraining order, insisting that it’s been a long time since she was struck.

The volunteers at the Domestic Violence Clinic were having little luck with the new client who came at the ultimatum of an employer - get a restraining order or don’t come back.

Minty Siu-Kootnikoff took a seat next to the woman and started talking, asking questions, including what would constitute a "long time."

"The more I talked to her I discovered her idea of him not hitting her for a long time meant last Thursday," Siu-Kootnikoff, an attorney at the clinic, said during a recent interview. "I finally was able to get her to maybe understand that it’s not a bad idea to get a restraining order."

About a year later the two women ran into each other at the market, the one-time client now divorced and free from her abusive ex-husband, playing double role as working single mom and student.

"It’s amazing how a single mom can juggle a budget," Siu-Kootnikoff said. "If single moms were running the country, things would be completely different."

Read more