EmilyM 3 years, 10 months ago on Research: Abusive Credit Card Lenders Lose Money

The study found that high-cost penalty fees and interest rates were not used to mitigate risk - as credit card issuers claimed - but instead were the risk that led to higher default rates. Banks with more consumer-friendly policies in place had lower default rates. The researchers attribute that to the fact that customers aren't getting hit with as many expensive fees.