\n\n“These are the sorts of proposals that sound good in theory\u2014who wouldn’t want to pay less in junk fees? But some of these fees exist for good reasons. (Late fees, for instance, encourage people to pay their bills on time, which is good for both credit card companies and for users, who will otherwise rack up more interest to pay back.) And in any event, companies aren’t simply going to say, “OK, we’ll just make less money.”<\/p>\n\n\n\n
Hotels may respond by raising base room rates or charging new fees for typical amenities. Airlines that can’t charge for choosing your seat may raise base ticket prices, baggage fees, or other costs. Banks that can’t fine people for overdrawing their accounts may raise rates for opening an account, require higher minimum balances, or deny more people bank accounts to begin with. Credit card companies that can’t charge late fees may deny more lines of credit or charge higher interest rates. And so on.<\/p>\n\n\n\n
All the Biden administration is really doing is shifting people’s costs around.”<\/p>\n\n\n\n