Lawmakers approve limits on tax refund loans

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Colorado lawmakers are marking tax day with a bill that would require more consumer information on tax refund loans.

The bill passed in the Business Affairs and Labor Committee on Wednesday by a vote of 9-2. It now goes to the full House for debate.

Refund Anticipation Loans are loans arranged by tax preparation companies like H&R Block, Jackson Hewitt and many other independent preparers based on anticipated refunds.

Lawmakers say they can carry triple digit loan rates and expose taxpayers to the risks of unpaid debt if their refunds do not arrive as expected.