The Consumer Financial Protection Bureau ordered international remittance firm Wise to pay nearly USD 2.5 million after finding it misled U.S. customers about fees and failed to provide required disclosures for remittance transfers and prepaid accounts, including exchange rates and other costs. The order also addresses Wise’s failure to refund remittance fees within the legally required timeframe when transfers did not arrive on time. The CFPB found violations of the Consumer Financial Protection Act of 2010 related to inaccurate advertising of ATM fees and charges, and violations of the Electronic Fund Transfer Act and Regulation E, including the Prepaid Rule and the Remittance Transfer Rule, tied to multiple disclosure errors and untimely fee refunds. Examples cited include marketing that implied global ATM fee reductions and withdrawal perks applied to U.S. users when they did not, and disclosure shortcomings for prepaid accounts funded via credit card through Apple Pay or Google Pay. The order requires approximately USD 450,000 in consumer redress and a USD 2.025 million civil money penalty to the CFPB’s victims relief fund.
Consumer Financial Protection Bureau 2025-01-30
United States' Consumer Financial Protection Bureau orders Wise to pay nearly USD 2.5 million for illegal remittance fee advertising and disclosure failures
The Consumer Financial Protection Bureau (CFPB) ordered Wise to pay nearly USD 2.5 million for misleading U.S. customers about fees and failing to provide required disclosures for remittance transfers and prepaid accounts. Violations included inaccurate advertising of ATM fees and breaches of the Electronic Fund Transfer Act and Regulation E. Wise must pay USD 450,000 in consumer redress and a USD 2.025 million civil money penalty to the CFPB’s victims relief fund.