Complex sentence: Late fees are charged to the account, which may drive the customer over their credit limit, resulting in over-the-limithe lender for the increased costs associated with servicing and collecting such accounts, as well as for the higher default rate.
Split into simpler sentences: Late fees are charged to the account, which may drive the customer over their credit limit, resulting in over-the-limit fees. These higher fees compensate the lender for the increased costs associated with servicing and collecting such accounts, as well as for the higher default rate.