Money transfer platform Wise has been fined $2.025 million by the Consumer Financial Protection Bureau (CFPB) for misleading customers regarding fees and charges.
The CFPB asserts that Wise, headquartered in London, illegally advertised incorrect fees and failed to adequately disclose exchange rates and other costs. In numerous communications, including emails and blog posts to its global customer base, Wise promoted lower ATM fees, free withdrawals, and various customer benefits. However, the CFPB noted that “Wise led customers in the US to believe these perks applied to them when they did not.”
Additionally, the CFPB claims the company did not provide accurate fee disclosures for consumers who used credit cards to fund prepaid accounts via Apple Pay or Google Pay, nor did it properly disclose exchange rates or refund fees when funds were not available to recipients by the promised date.
As part of the penalty, Wise is required to pay $450,000 to affected customers and an additional $2.025 million to the CFPB’s victims relief fund. CFPB Director Rohit Chopra stated, “By deceiving customers, Wise gave itself an unfair advantage over other competitors in the remittances market. New technology can make money transfers cheaper and more convenient, but companies must be truthful and uphold established laws.”
In response, a Wise spokesperson highlighted the company’s commitment to customer service, noting that during a routine CFPB examination from June 2020 to May 2021, certain technical issues were identified. These included problems related to downloadable materials, wording choices, and the presentation of exchange rates. The spokesperson emphasized that Wise took proactive steps to address these issues and compensated affected customers, totaling $450,000, soon after receiving the findings in February 2022.
The spokesperson added, “Wise cooperated fully with the CFPB and worked diligently to resolve all identified issues, with most being rectified by November 2022.” Furthermore, they mentioned that on January 30, 2025, Wise reached an agreement with the CFPB to resolve the matter. While the company disagreed with the CFPB’s characterizations of its practices, it emphasized its commitment to transparency and compliance. In 2024, Wise reported that it saved its nearly 13 million customers around $2.2 billion (approximately £1.8 billion) compared to traditional banks.
Wise remains dedicated to enhancing its compliance program to ensure robust practices, particularly in the US market, where it has strengthened its teams and tools in pursuit of optimal customer outcomes and experiences.