The Consumer Financial Protection Bureau (CFPB) has fined Wise, a UK-based remittance company, approximately $2 million for illegal actions, including misleading fees and inadequate disclosure of costs. The bureau claims Wise misled U.S. customers about ATM fees and failed to refund remittance fees in a timely manner. This negligence resulted in significant consumer harm. Wise has been ordered to pay $450,000 to affected customers in addition to their fine. The CFPB emphasizes the need for transparency in financial transactions, especially as fintech expands its influence in the market.
By deceiving customers, Wise gave itself an unfair advantage over other competitors in the remittances market, stated CFPB Director Rohit Chopra.
The CFPB has hit UK-based remittance company Wise with about a $2 million fine for a series of illegal actions, including advertising inaccurate fees.
Wise stated it proactively compensated affected customers a total of $450,000 and cooperated fully with the CFPB to resolve identified issues.
New technology can help make money transfers cheaper and more convenient, but companies must be truthful and live up to longstanding law.
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