The CFPB's May 15 amended consent order supersedes its January 30 enforcement action against Wise US, the Delaware-incorporated subsidiary of London-based Wise PLC that provides remittance services to more than three million U.S. customers. The original order required Wise to pay approximately $450,000 in consumer restitution and a $2.025 million civil penalty for violations including advertising inaccurate ATM fees, failing to properly disclose exchange rates, and not refunding remittance fees within required timeframes when transfers were delayed.
The Bureau found that Wise misled customers about ATM fees on its prepaid card product and failed to provide proper fee disclosures for its remittance transfer services. When money transfers did not arrive on schedule, the company violated the Electronic Fund Transfer Act by failing to refund remittance fees within the legally required timeframe. The prepaid card violations alone resulted in at least 16,000 consumers being overcharged, according to the Bureau.
Under the amended order, Wise must still provide consumer redress for the harm caused by its violations but will pay a dramatically reduced civil penalty of approximately $45,000. The company operates entirely through digital channels in the U.S., offering remittance transfers through its mobile app and prepaid account services without physical storefronts in 48 states, D.C., and U.S. territories.
The penalty reduction reflects the CFPB's alignment with provisions of the Consumer Financial Protection Act, relevant precedents for the conduct and cooperation involved, and terms of Executive Order 14219 issued February 19, 2025. The Bureau also cited its rescission of Consumer Financial Protection Circular 2024-02 regarding deceptive marketing practices about remittance transfer speed and costs, published in April 2024.
The enforcement action demonstrates the CFPB's continued focus on remittance transfer providers, particularly digital-first companies serving immigrant communities. Wise facilitates both traditional international transfers and transactions that occur entirely outside the United States, processing payments through U.S. bank accounts and allowing customers to store funds in multiple currencies on prepaid cards.
The significant penalty reduction in the amended order may signal shifting enforcement priorities under new agency leadership, particularly regarding cooperation credit and proportionality in civil monetary penalties for nonbank financial services providers.