Republic Bank and Trust Company of Louisville, Kentucky is the final bank in the country to be forced to eliminate their super high interest tax refund loans that prey on the financially strapped.  The bank, in conjunction with Jackson Hewitt tax service,  have conspired for years to convince needy tax filers to pay up to 149% interest for these outlandish loans that enable tax payers to receive their tax refund money a few days early. (The IRS will now direct deposit your tax refund moneys very quickly in a bank account of your choosing)

The New York Times has an excellent story on how federal regulators have finally eliminated this tactic that Republic Bank has gotten by with for years.

Following is an excerpt from the story, and here is the link to the full story:

“Recent action by federal regulators means that just one bank, the Republic Bank & Trust Company of Louisville, Ky., is offering the loans this tax season.

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Initially it was found that U.S people had a lot of problems to manage their credit related problems. It happened because of the Americans were not allowed to keep a track of their credit records and were abused and harassed extensively if they were unable to pay the bills on time. Credit reports were found to be shocking and the consumers had to follow certain credit repair tips to improve their credit scores. In order to bring an end to these problems, Fare Credit Reporting Act was made effective so as to help you know your credit rights. In addition to this act, few other consumer protection acts have been implemented so as to protect your rights when you’re working with the creditors and the collection agencies.

3 Laws that will help you clean your credit rating

Read on to gain knowledge about the laws that can help you know the consumer rights when you’re using a credit card.

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Credit cards are useful, but potentially dangerous financial instruments. When used correctly, they offer security, benefits, and rewards that make them a vastly superior payment to cash, checks or debit cards. However, when using credit cards to incur revolving debt, there can be expensive drawbacks.

Unlike a loan for a fixed amount, credit cards are revolving charge accounts. This means that borrowers can continue to incur additional debt each month, even as they make payments on their existing balances. For consumers, this is a hazardous aspect of a powerful financial instrument. Too often, cardholders make purchases without regards to their ability to pay for them, and must therefore carry a balance.

As time passes, this practice becomes a habit as they incur more debt at a rate faster than they are paying off their existing balances.

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A recent analysis from the National Bankruptcy Research Center shows that personal bankruptcies decreased in 2011.  Last year, 1.35 million people in the U.S. filed for personal bankruptcya 12 percent decrease from the 1.5 million personal bankruptcies filed in 2010.

Based on this information, approximately 1 in every 175 Americans filed for Chapter 7 or Chapter 13 bankruptcy in 2011.  17 percent fewer Chapter 7 bankruptcies and 25 percent fewer Chapter 13 bankruptcies were filed in the U.S. last year.

Chapter 7 bankruptcy and Chapter 13 bankruptcy are the most frequently filed types of bankruptcy.  Under Chapter 7 bankruptcy, individuals liquidate some of their assets to pay off their debts, and under Chapter 13 bankruptcy, filers create a repayment plan to repay creditors over a certain time period.

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Do you have a question about consumer credit? You may find an immediate answer by using the search engine. If you can’t find what you’re looking for, please fill out the form, being as specific as possible.

Please note: The Ask Experian team cannot respond to each question individually. However, if your question is of interest to a wide audience of consumers, the Experian team will include it in a future column.

I have two credit cards that are affiliated with private companies. Neither of these credit cards shows up on my credit report. Both have large limits with small balances. How can I get them added to my credit report, and thus improve my credit scores?

Often, a credit card account affiliated with a private company or retailer, is reported but does not show the name of the retailer. Instead, the accounts are reported by the lender the actually holds the account. Check your credit report and look for accounts under the bank’s name.

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