CFPB fines Fintech Wise, claiming to be charged fraudulent fees

Consumer Financial Protection Bure Wise with About $ 2 million a fine About what he described as “a series of illegal actions.”

These actions include advertising inaccurate fees and failure to fulfill the proper opening of currency rates and other costs, CFPB claims. Moreover, the agency claims that Fintech has misled customers in the United States on its ATM fees and has failed to correctly disclose other fees. He also claims that when people sent money that did not arrive on time, Wise did not manage to repay the timeframes required by law. This has led to the “hundreds of thousands of dollars” to the harm of consumers, charging CFPB.

The agency has ordered publicly traded Wise To pay about $ 450,000 in compensation to the users and a civil money penalty of $ 2.025 million.

“By deceiving customers, Wise gave himself an unjust advantage over other competitors in the cash translation market,” CFPB director Rohit Chopra said in a written statement. “The new technology can help transfer money more expensive and more convenient, but companies must be real and comply with the long -standing law.”

The company is doing business in the United States through a fully subsidiary, Wise US. Recently announced expansion in MexicoS

In a statement made to TechCrunch, a wise spokesman said CFPB held between June 2020 and May 2021 a routine study of Wise US Inc. to comply with various US laws related to financial suppliers. “

Then CFPB in February 2022 emphasized some questions where the wise statements “inadvertently acted in ways in which the bureau considered it necessary to deal”.

Wise said that “proactively and voluntarily compensates for a total of $ 450,000 affected.” He also says he “cooperates entirely with CFPB and immediately works to deal with all identified problems”, with the majority being resolved until November 2022.

The company said it has reached an agreement with the Bureau on January 30, adding: “We worse, we are constantly investing in our conformity and processes to ensure that we maintain a stable framework, including in the US, where we have strengthened our teams and Significant tools built. “

This is the latest example for Fintech companies to be fined for fraudulent practices. Block, the Cash App Company, recently agreed To pay a $ 80 million fine As part of an agreement related to violations of the Bank Secrets Act (BSA) and the rules for combating money laundering (AML).

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