A borrower who obtains a refund anticipation loan may rescind the loan, on or before the close of business on the next day of business, by either returning the original check issued for the loan or providing the amount of the loan in cash to the lender or the facilitator. The facilitator may not charge the borrower a fee for rescinding the loan or a refund anticipation loan fee if the loan is rescinded but may charge the customer a fee for establishing and administering a bank account to electronically receive and distribute the refund.

Terms Used In Virginia Code 6.2-2503

  • Borrower: means an applicant who receives a refund anticipation loan through a facilitator. See Virginia Code 6.2-2500
  • Customer: means an individual for whom tax preparation services are performed. See Virginia Code 6.2-2500
  • Facilitator: means a person who receives or accepts for delivery an application for a refund anticipation loan, delivers a check in payment of refund anticipation loan proceeds, or in any other manner acts to allow the making of a refund anticipation loan. See Virginia Code 6.2-2500
  • Refund anticipation loan: means a loan, whether provided through a facilitator or by another entity such as a financial institution, in anticipation of, and whose payment is secured by, a customer's federal or state income tax refund or by both. See Virginia Code 6.2-2500
  • Refund anticipation loan fee: means any fee, charge, or other consideration imposed by a lender or a facilitator for a refund anticipation loan. See Virginia Code 6.2-2500

2006, c. 399, § 6.1-477; 2010, c. 794.

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