Yes, they are, in the UK. It’s illegal there to charge more for a penalty/service fee than it actually costs the organization to perform the service. Like, you can’t charge 32 pounds to cover the cost of a bounced check when the highest number you can possibly document in terms of actual cost incurred to the bank is 4.50 pounds.
If this law were enacted in the U.S. it would destroy a huge sector of the American economy! A huge, evil sector. That would rock. So I’m thinking it won’t happen.