CFPB Fines Wise $2.5M for Misleading Customers

Money transfer platform Wise has been fined $2.5 million by the Consumer Financial Protection Bureau (CFPB) for misleading customers about fees and exchange rates. The CFPB found that Wise falsely advertised lower ATM fees, free withdrawals, and other perks that were not available to U.S. customers.

Additionally, Wise failed to disclose accurate fees for users funding prepaid accounts via Apple Pay or Google Pay, did not properly communicate exchange rate details, and neglected to refund fees when transactions were not completed on time.

As part of the penalty, Wise must pay $450,000 in refunds to affected customers and $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 competitors in the remittances market. New technology can make money transfers cheaper and more convenient, but companies must be truthful and live up to longstanding law.”