wait, do we really think the banks are just going to eat these losses?
In theory, the fees should match the marginal cost of the risk associated with accounts in arrears. If the government chooses to subsidize such such "deadbeat" accounts, then credit card companies will cut back on cash back programs or maybe increase the interest associated with being late in payments which is a different penalty that late fees. I assume the Biden administration administration vetted this and the consequences, including the unintended consequences. in general, the Biden administration is somewhat reasonable in economics rather then being a populist ignoramus ala Huey Long of for that matter Donald Trump, who spent like a drunken sailor.
Make sense?
