The Consumer Financial Protection Bureau yesterday announced it has amended its January 30, 2025 consent order against international remittance company Wise, reducing the civil money penalty from $2.025 million to approximately $45,000. The Bureau also reaffirmed the requirement for Wise to pay $450,000 in consumer redress, which it had already completed.
Why it matters: The amendment comes after the CFPB reevaluated the penalty in light of applicable legal provisions, prior precedents, Wise’s level of cooperation, and recent policy changes, including the rescission of guidance around deceptive remittance marketing and the issuance of Executive Order 14219.
Background:
- Wise is a global money services provider, publicly traded in the U.K., operating in the U.S. through its subsidiary Wise US.
- Wise US offers remittance transfers and prepaid account products in 48 states and U.S. territories via mobile app, prepaid, and debit card services.
- The CFPB originally alleged that Wise misled U.S. consumers about ATM fees and failed to accurately disclose exchange rates and other associated costs.
- The Bureau also found that Wise failed to issue timely refunds when funds did not reach recipients on schedule.
What the CFPB found:
- Wise allegedly sent misleading marketing communications that inaccurately represented ATM fees and other service perks.
- U.S. customers were led to believe they would receive benefits such as two free ATM withdrawals of over $200, when in reality the benefit was limited to two free withdrawals of only $100 each.
- Wise failed to provide proper disclosures on exchange rates and funding fees for its prepaid products, and violated timing requirements for refunding remittance fees.
The amendment:
- The May 15, 2025 Amended Consent Order supersedes the earlier order.
- The revised penalty of roughly $45,000 was determined based on Section 5565 of the Consumer Financial Protection Act, and reflects changes in CFPB enforcement posture.
- The decision factored in the rescission of a particular piece of guidance from the CFPB, which had addressed deceptive marketing practices concerning remittance speed and cost.
Read the amended consent order.
UPDATE: This article was updated to reflect that Wise has already paid the $450,000 in redress to affected customers.
