Money transfer platform Wise has been penalized $2.5 million by the Consumer Financial Protection Bureau (CFPB) for misleading customers regarding fees and charges.
The CFPB stated that the London-based company illegally advertised incorrect fees and failed to adequately disclose exchange rates and other costs. In various communications, including emails and blogs, Wise promoted lower ATM fees, free withdrawals, and other benefits, misleading U.S. customers into believing these perks applied to them when they did not.
Additionally, Wise did not accurately disclose fees for consumers funding prepaid accounts via credit cards through Apple Pay or Google Pay, failed to provide correct exchange rates, and did not issue refunds for fees when funds were not available to recipients by the promised date.
The CFPB has mandated that Wise pay $450,000 to affected customers and another $2.025 million to the regulator’s victims relief fund. CFPB Director Rohit Chopra emphasized, “By deceiving customers, Wise gave itself an unfair advantage over other competitors in the remittances market. New technology can help make money transfers cheaper and more convenient, but companies must be truthful and adhere to established laws.”