Magic Johnson is appearing in an advertising campaign throughout the 2009 tax season for Jackson Hewitt, the franchise tax preparer notorious for preying on low-income people. Kimberly S. Jones of the California Reinvestment Coalition has written a piece over at Afro-Netizen that looks at Jackson Hewitt’s practices and the dangers that can result from having an icon like Magic Johnson pitch predatory loans.
Jackson Hewitt charges fees with an APR of either 134% or 140%. “Refund anticipation loans are part of a spectrum of abusive, high-cost small loans that have plagued low-income neighborhoods and communities of color, draining hundreds of millions of dollars in wealth, too often through deceptive practices,” said Sarah Ludwig, co-director of Neighborhood Economic Development Advocacy Project.