"When you take out a tax refund loan, your tax preparer (working in partnership with a bank) lends you the amount of the tax refund that you expect to get back, but may charge you a significant amount in interest and fees. Then, when the government sends your actual refund check, it is direct-deposited into the bank that made the loan. Because the loan is paid back when you receive your tax refund, the term of a tax refund loan is short—usually seven to 14 days."
"When tax preparers promise an instant refund, they are really giving you an expensive, short-term loan that will reduce the amount of your eventual tax refund by as much as a thousand dollars. Be skeptical of these high-priced, short term loans.”