Do credit card late fees actually protect consumers?

By JAIME HANSON of NerdWallet

The Consumer Financial Protection Bureau is considering a new rule that would slash credit card late fees by 75%, from current highs of up to $41 to as low as $8. Though a reduction in fees may seem attractive, opponents argue it will lead to long-term consequences that include lower credit scores and mounting consumer debt. Consumers surveyed by the American Banking Association seem to agree, noting that a fee of $10 or less would not be sufficient motivation to pay on time. So will a reduction in fees help consumers, or cause greater harm?