Credit card companies justify charging cardholders additional fees for late payments by asserting the principle that those who expose other individuals, companies, or institutions to financial risk should pay for that risk, and by pointing out that late-paying cardholders present a greater risk of default than other cardholders
Without late fees, the companies argue, they would have to spread the cost of the risk over all cardholders
Insurance companies should demand higher insurance rates of drivers of sports cars than of other drivers, since sports car divers are more likely to cause accidents and thus are more likely to require the companies to pay out money in claims.