In a significant regulatory action, the Consumer Financial Protection Bureau (CFPB) has fined Wise, a London-listed fintech company, nearly $2.5 million for misleading advertising related to its fees. The penalty comprises a $2 million civil fine and $450,000 in customer compensation. The CFPB’s investigation revealed that Wise inaccurately advertised ATM fees, failed to properly disclose exchange rates, and did not refund remittance fees within the legally required timeframe when payments were delayed. These actions were deemed to have given Wise an unfair advantage in the remittance market.
Background on Wise and CFPB
Wise, formerly known as TransferWise, is a prominent fintech company specializing in international money transfers and cross-border payments.