State Treasurer Richard Moore says tax refund loans are a bad deal.

An investigation into so-called refund anticipation loans released by the treasurer's office today showed that they cost North Carolina taxpayers more than $44 million each year.

Approximately 500,000 state residents get a refund loan each year, in which the lender gives the taxpayer a cash advance based on their estimated tax refund, Moore said.

But while they give money quickly, they're not good in the long run, he said. Some carry an interest rate as high as 803 percent.

The number of lenders registered with the state Commissioner of Banks has increased by 52 percent over the past six years.

Moore, a likely Democratic gubernatorial nominee, said he would work to educate taxpayers and convince lenders to lower their rates.

He said new laws could also require taxpayers receive counseling before getting a refund or forbid lenders from also preparing tax returns.