If you can't pay your taxes in full by April 15th, you should still file your return and pay what you can. The IRS offers payment plans that allow you to spread out the payments over time, reducing the late-payment penalty by half. These plans can be applied for online, by phone, or by mail, and can take up to 180 days for short-term plans and up to 72 months for long-term plans.
The CFPB's new rule caps late fees at $8 per occurrence, saving card users an estimated $220 annually. The rule targets the excessive fees charged by credit card companies, particularly to low-credit-score borrowers. It ends automatic inflation adjustments and requires fees to cover only collection costs. Industry groups opposed the change, but the CFPB maintains its authority under the Card Act. The rule takes effect 60 days after publication in the Federal Register.
Responding to excessive credit card costs, the Consumer Financial Protection Bureau has enacted new regulations to limit late fees. Previously, cardholders faced substantial late fees and compounding penalties, leading to high debt, damaged credit, and difficulty accessing affordable loans. The new rule aims to alleviate financial burdens by reducing late fees, potentially saving consumers billions of dollars and mitigating the adverse effects on their credit scores. This addresses the rising financial stress and challenges faced by many consumers due to increasing costs and interest rates.
