Another classic example of the Government in solving one problem, create 3 or 4 more other problems as a result. The card companies will simply make up the difference in other even less friendlier ways. Late and over limit fees increase, card holders who pay off their balance each month may be charged an annual fee. Interest rates increase across the board. And say goodbye to perks such as cash back, or flier miles.
Not likely. Card holders have become used to the idea that there should be no fee simply for having the card. There is too much competition in the industry to permit annual fees. The only exceptions are cards that provide extra services in the T&E area and have a strong brand (Amex). Customers who don't keep a balance would simply switch back to cash, since they are using the cards for payment convenience, not to provide them with funds they don't have. And then the card companies would lose a good chunk of the burgeoning revenue they are getting from merchant fees on everyday purchases that a few years ago were almost all cash.