The Consumer Financial Protection Bureau has mandated Wise, a London-based money transfer platform, to pay nearly $2.5 million following findings of misleading customers about fees and exchange rates. The bureau's investigation revealed Wise's failure to disclose accurate ATM fees and delays in refunding remittance fees. Former CFPB Director Rohit Chopra emphasized that such practices undermine fair competition. Wise has expressed disagreement with the CFPB's conclusions but cooperated in good faith. The new acting CFPB director, Scott Bessent, has since ordered a halt to many bureau operations, signaling changes in oversight efforts.
The London-based fintech misled customers in the U.S. about its ATM fees and failed to refund remittance fees in the required timeframe after money customers sent did not arrive on time.
Wise must pay $450,000 in redress to harmed customers and $2.025 million as a civil money penalty, according to the CFPB order.
New technology can help make money transfers cheaper and more convenient, but companies must be truthful and live up to longstanding law.
Since the order was announced last week, Chopra has been fired from his role and replaced by Treasury Secretary Scott Bessent as the agency's acting director.
#consumer-financial-protection-bureau #wise #remittance-fees #financial-regulations #consumer-protection
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