By Katanga Johnson

WASHINGTON (Reuters] – A U.S. watchdog for consumers will reexamine its regulations around credit card fees to discourage abuses, encourage excessive late fees, and increase competition. The agency’s director informed Congress Wednesday that the decision was made by Congress, confirming a Reuters report from April.

Rohit Chopra (Director Consumer Financial Protection Bureau, CFPB) stated that he was asking staff for their opinion on whether it is worth reopening the CARD Act rules… and determining if any modifications are necessary.

He said, “We want to ensure… credit cards are competitive markets that people can use for lower rates,” and highlighted the importance of addressing late fees.

Chopra responded to a question by a lawmaker regarding the Credit Card Accountability Responsibility and Disclosure Act. It was an act that was created in 2009 as a way to stop abuses following global financial crises.

Following Reuters’ report this month, which stated that lenders who illegally collect late payments fees on credit cards from their customers will be subject to increased enforcement by the agency, his speech to the House Financial Services Committee follows the possibility that it may rewrite rules that establish thresholds.

This development is also indicative of a broader crackdown on “junk fees” by the CFPB, a term that covers overdrafts, late payment fees for credit cards, bounced checks fees and other fees.

Credit unions and banks raked more than $15 Billion in overdraft fees and associated fees in 2019 and $12 Billion in latecredit card fees, according to CFPB estimates.

Chopra was sworn into as CFPB Director in October. He had previously explained his agency’s policies and enforced actions to the Senate Banking panel a single day before.

Chopra said that the credit card market was crucial to America and that we must live up to the CARD Act ideals.