It is a LOAN pure and simple.
The fact that you are pledging to repay the LOAN using the federal refund doesn't make it any less a LOAN.
Your return was never APPROVED when you filed it ... it was only ACCEPTED for processing. The refund will not be released until your return goes thru the IRS processing and it is APPROVED for release. The bank making the loan is not certain if you will really get the refund you filed for or when that refund will be released (since the IRS no longer issues a debt indicator like in prior years) ... so they are making a loan based on any information they deem necessary. And that is spelled out in the contract that you signed and agreed to if you care to read it.
If you are denied the loan then they will send you the reason for the denial just like any other denied loan required by law.
