Instant tax refunds prey on the unstable financial conditions of the poor, charging triple-digit interest rates and sky-high fees while barely speeding up the refund process. Demand that major banks and tax preparers inform their customers of cheaper, smarter tax refund options instead of offering refund anticipation loans.

The implementation of new IRS technology has shortened tax refund wait times to around 10 days with direct deposit. Refund anticipation loans only speed up this process by a few days, charging interest rates from 50% to 500% in the process. Administrative and bank fees only increase the loans' price tag.

Major banks and tax prepareration agencies know that instant tax refunds are big business, pulling in at least "$833 million in loan fees" and "over $68 million in other fees" every year, according to the National Consumer Law Center. This tax season, corporate profits should take a back seat to the best interests of American taxpayers.

By using the IRS' Traditional Free File online tax filing service, it's cheap and easy for low-income Americans making $57,000 or less in 2009 to electronically file their taxes online. And for those with checking or savings accounts, direct deposits exponentially speed up the tax refund process.

Bank of America, CitiBank, JP Morgan Chase, and Wells Fargo, along with tax preparation companies H&R Block and Jackson Hewitt, should inform their customers that in light of these time-saving taxpayer options, refund anticipation loans are costly and unnecessary. Ask these companies to put the interests of taxpayers first by helping low-income customers open free or low-cost checking accounts, ensuring that they can file for direct deposit and receive their tax refunds in the shortest time possible.

Photo credit: Alex E. Proimos