News Summary

The Consumer Financial Protection Bureau (CFPB) has fined Wise, a UK-based international remittance company, nearly $2.5 million for a series of violations including deceptive advertising and failure to properly disclose exchange rates and fees. The fine includes a $2.025 million civil money penalty and $450,000 in customer compensation. The CFPB’s allegations highlight that Wise misled US customers about ATM fees and failed to refund remittance fees in a timely manner when money did not arrive on time, leading to significant consumer harm. Wise operates in the US through its subsidiary, Wise US, and has expanded into Mexico. In response, Wise stated that it has already compensated affected customers and cooperated fully with the CFPB to resolve the identified issues, with most being addressed by November 2022.