They do make significant profits from them, especially from poorer people who incur them. They're also a great pretense to charge even more penalty fees, trapping people in a cycle of debt that is, conveniently, very profitable.
This is the same board where people will tell you to charge $10,000 a week for cloud consulting because it's "value-based pricing", and to steadily increase the per-user costs for your dime-a-dozen CRUD web app "because people will pay it". Amazing.
Banks do it because they can, buddy. It's wealth extraction, and if you aren't the one doing the extracting, you're the one being extracted.
This is the same board where people will tell you to charge $10,000 a week for cloud consulting because it's "value-based pricing", and to steadily increase the per-user costs for your dime-a-dozen CRUD web app "because people will pay it". Amazing.
Banks do it because they can, buddy. It's wealth extraction, and if you aren't the one doing the extracting, you're the one being extracted.