The Consumer Financial Protection Bureau (CFPB) recently ordered Wise, a UK-based electronic money services provider, to pay nearly $2.5 million for a series of illegal actions.
Wise’s service allows customers to send, receive, and store remittances through a mobile app and prepaid accounts and debit cards. The CFPB found Wise misled U.S. customers about ATM fees and also failed to properly disclose other fees. In addition, Wise failed to refund the remittance fees in the timeframe required by law when people sent money that did not arrive on time.
“By deceiving customers, Wise gave itself an unfair advantage over other competitors in the remittances market,” CFPB Director Rohit Chopra said. “New technology can help make money transfers cheaper and more convenient, but companies must be truthful and live up to longstanding law.”
The CFPB’s order requires Wise to pay harmed consumers approximately $450,000 and to pay $2.03 million to the CFPB’s victims relief fund.
Wise does business in the United States through Wise US, a wholly owned subsidiary, headquartered in New York and incorporated in Delaware. It has more than 3 million U.S. customers.
The CFPB found that Wise violated the Consumer Financial Protection Act of 2010 and the Electronic Fund Transfer Act.