The WSJ just did a piece on this:

"... annual late-fee revenue for the industry has jumped to a record $7.3 billion from $1.7 billion in 1996 ... About 58% of customers had to pay a late fee during the past year ... In all, late fees represent the third-largest revenue source for card companies, behind interest payments and fees from merchants that accept the cards."

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[This message has been edited by Family flyer (edited 05-22-2002).]